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MoFo Reenforcement The Enforcement Blog

FinCEN Issues a Proposed Beneficial Ownership Rule

Posted in Regulatory Developments

On December 7, 2021, the Financial Crimes Enforcement Network issued a Notice of Proposed Rulemaking to implement the beneficial ownership information reporting provisions of the Corporate Transparency Act, which was contained in the Anti-Money Laundering Act of 2020. The Proposed Rule addresses comments that FinCEN received in response to its April 5, 2021 Advance Notice of Proposed Rulemaking. FinCEN asserts that collecting and providing BOI to law enforcement, financial institutions, and other authorized users will help combat corruption, money laundering, terrorist financing, tax fraud, and other illicit financial activity. The agency is accepting comments on the NPRM until February 7, 2022.

This is the first of three rulemakings to implement the CTA, and FinCEN will issue additional rules on (1) persons authorized to access BOI and for what purposes, and the safeguards imposed to protect BOI; and (2) revisions to the Customer Due Diligence rule, which only applies to financial institutions.

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