Dec. 16, 2022
The Financial Crimes Enforcement Network issued a proposed rule governing access to and protection of beneficial ownership information.
Details: The proposal would establish regulations that would govern the circumstances under which beneficial ownership information may be disclosed to agencies and financial institutions and how it must be protected. It is the second of three proposals FinCEN intends to issue on beneficial ownership.
Previous Rule: FinCEN earlier this year issued a final rule requiring most U.S. corporations, limited liability companies, and other entities to report to FinCEN information about their beneficial owners—those who ultimately own or control the company.
Background: Both rules enact provisions of the Corporate Transparency Act—which passed as part of the Anti-Money Laundering Act—to strengthen national security and the integrity and transparency of the U.S. financial system.
ICBA Position: In letters to FinCEN on beneficial ownership reporting and the agency’s broader Bank Secrecy Act review, ICBA called on the agency to withdraw bank beneficial ownership collection and verification requirements now that it is required to collect this information directly from reporting companies.