ICBA to FinCEN: Drop beneficial owner reporting mandate

With the Financial Crimes Enforcement Network now required to collect beneficial ownership information directly from reporting companies, it should withdraw its requirement that banks collect this information as well, ICBA told the agency.

Reporting Requirements: In a comment letter to FinCEN on a proposed beneficial ownership rulemaking, ICBA reiterated its position that this information should be collected and verified at the time a legal entity is formed.

Additional Recommendations: ICBA also advocated not requiring banks to educate reporting companies on the new requirements. It also provided recommendations to promote more accurate information from reporting companies, mitigate logistical challenges, and ensure more reasonable reporting deadlines.

Background: The proposed rule—which implements ICBA-advocated provisions of the 2020 Corporate Transparency Act—would require covered entities to submit beneficial ownership information to FinCEN and provide timely access to this information to law enforcement, financial institutions, and other authorized users.

Next Steps: FinCEN said the next step in the Corporate Transparency Act rulemaking series will be publishing proposed rules on beneficial ownership information access and disclosure requirements, which it expects to publish later this year.