FinCEN says it will only enforce willful beneficial ownership violations

Small-business owners doing their best to comply with beneficial ownership requirements should not lose sleep over the new reporting requirements, Financial Crimes Enforcement Network Deputy Director Jimmy Kirby said.

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: Speaking in Houston, Kirby said FinCEN only plans to enforce willful violations of the law, though he noted some small-business owners have asked why these reporting requirements apply to many small businesses.

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.