FinCEN issues notice to bank customers on beneficial ownership requirements

The Financial Crimes Enforcement Network issued a notice to customers of financial institutions about reporting beneficial ownership information, or BOI.

Background: The Corporate Transparency Act requires certain entities, including many small businesses, to report to FinCEN information about the individuals who ultimately own or control them.

Details: The notice provides answers to questions about reporting BOI to FinCEN under the CTA and providing BOI to financial institutions in connection with federal customer due diligence requirements. FinCEN encouraged financial institutions to share the reference guide with customers that may be required to report BOI.

ICBA View: ICBA has repeatedly called on FinCEN to withdraw its requirement that banks collect beneficial ownership information now that the agency is required to collect this information directly from reporting companies.