On December 7, 2021, FinCEN issued a Notice of Proposed Rulemaking (NPRM) under the Corporate Transparency Act (CTA) and the Anti-Money Laundering Act of 2020 (AMLA).
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”.
Published
2021/11/10