FinCEN issues final rule on beneficial ownership reporting

The Financial Crimes Enforcement Network issued a final rule establishing a beneficial ownership information reporting requirement.

Details: The rule will require most U.S. corporations, limited liability companies, and other entities to report to FinCEN information about their beneficial owners—those who ultimately own or control the company.

Background: The rule enacts provisions of the Corporate Transparency Act—which passed as part of the Anti-Money Laundering Act—to strengthen national security and the integrity and transparency of the U.S. financial system.

ICBA Position: In letters to FinCEN on beneficial ownership reporting and the agency’s broader Bank Secrecy Act review, ICBA called on the agency to withdraw bank beneficial ownership collection and verification requirements now that it is required to collect this information directly from reporting companies.