ICBA: Additional beneficial ownership reporting changes needed

ICBA said that while it supports the Financial Crimes Enforcement Network’s plan to amend its proposed beneficial ownership information reporting form, it is concerned the proposal would require database users to determine whether submitted information is accurate.

Reporting Form Change: In a comment letter to FinCEN, ICBA said the agency rightly responded to concerns that its proposed rule would have allowed reporting companies to avoid providing required information on the reporting form. ICBA previously called on FinCEN to remove all 29 “check if you are not able to obtain” references from the reporting form, with members of Congress later urging the agency to amend its proposal.

Information Verification: Nevertheless, ICBA expressed concerns that FinCEN’s amended proposal implies that users of its nonpublic database of beneficial ownership information will determine whether the information is accurate. In its letter, ICBA said FinCEN should verify the reported information to ensure it is “highly useful,” as required by the Corporate Transparency Act; to remove duplicative burdens on financial institutions; and to streamline its information sharing with law enforcement or other agencies.

Filing Deadlines: In a separate letter to FinCEN, ICBA expressed support for the agency’s proposal to extend the filing deadline for reporting companies created or registered in 2024 from 30 days to 90 days. ICBA also urged FinCEN to extend the 90-day reporting deadline to all entities created or registered in 2025 to promote needed flexibility and to support a more useful database.

Background: Starting Jan. 1, 2024, many U.S. companies will have to report information about their beneficial owners—the individuals who ultimately own or control the company.

More: ICBA has repeatedly called on FinCEN to withdraw beneficial ownership requirements for banks now that it is required to collect this information directly from reporting companies, including in a written statement to Congress and a comment letter to the agency earlier this year.