the CTA was enacted in 2021 to address these issues by requiring certain entities to report beneficial ownership information (BOI) directly to FinCEN. The CDD Rule, effective since May 11, 2018, mandates that financial institutions collect BOI as part of their due diligence processes to ensure th...
Beneficial Ownership Information Access and Safeguards, 88 FR 88,732 (Dec. 22, 2023); FinCEN, Fact Sheet: Beneficial Ownership Information Access and Safeguards Final Rule (Dec. 21, 2023); FinCEN, Small Entity Compliance Guide for Beneficial Ownership Information Access and Safeguards Requireme...
On December 16, 2022, FinCEN proposed the Beneficial Ownership Information Access and Safeguards, and Use of FinCEN Identifiers for Entities rule (the “Proposed Access Rule”) laying out theprotocols for access to the beneficial ownership database by law enforcement and by eligib...
(each, a "Reporting Company") to report certain identifying and beneficial ownership information ("BOI") directly to FinCEN to be maintained in a database managed by FinCEN.3 The Proposed Access Rule addresses which persons will be authorized to access such BOI, how such persons will receive ...
Beneficial Ownership Information Posted on December 21, 2022 by Richard Messick 2 The cause of financial transparency just recovered some of the ground recently lost when the European Court of Justice struck down the EU directive on public access to corporate ownership data. Last Friday the U....
Notably, FinCEN clarified that the proposed rule does not include a customer identification program requirement, nor the collection of beneficial ownership data and information for legal entity customers of investment advisers. However, FinCEN predicted addressing these additional requirements in future...
The Proposed Rule would not immediately require covered investment advisers to comply with the CIP Rule (i.e., procedures to verify the identity of customers), or the beneficial ownership requirements of the CDD Rule. However, those requirements will eventually be imposed through separate r...
With regard to who can access that sensitive information reported to FinCEN, the CTA specifically provides that beneficial ownership information collected under the statute is confidential and generally may not be disclosed by an officer or employee of: the federal government; a state, local, or ...