The proposed rule would require certain entities to report beneficial ownership information to FinCEN.
Specifically, the NPRM sets out who must report beneficial ownership information as well as what information must be provided and when.
Generally, any entity that is created in or registered to do business in the United States would be subject to these reporting requirements. There are, however, some exemptions, such as for “Large Operating Companies”, charities and churches.
Reporting companies would need to submit a Beneficial Ownership Information (BOI) Report to FinCEN. The timing depends on when the company is created/registered; there are also requirements for updating and/or correcting previously submitted information.
Keep in mind, this NPRM is geared towards the entities themselves and what they would be required to do. That said, don’t think financial institutions are out of the woods. There will be more rules coming down the pipe regarding access to the information. FinCEN will also eventually revise the Customer Due Diligence Beneficial Owner rules for financial institutions, in light of this rule.
Comments may be submitted through February 7, 2022.
Ready to learn more? We will be covering this and many other BSA/AML-related hot topics at our upcoming webinar “BSA/AML New Year Update”.
Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them.
Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).