USA’s Financial Crimes Enforcement Network (FinCEN) has issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking public comment on the execution of the Corporate Transparency Act (CTA)’s beneficial ownership information reporting provisions.
The CTA amends the Bank Secrecy Act, making it mandatory for corporations and similar entities to report beneficial ownership information. This new mandate will improve USA’s national security by preventing financial criminals to misuse the country’s legal structures.
FinCEN will store all beneficial ownership information in a secure and confidential database, inaccessible to the public, as per CTA guidelines. FinCEN can also disclose such information subject to appropriate protocols to specific parties like federal law enforcement. Moreover, the CTA has made it mandatory for FinCEN to revise current customer due diligence regulations about beneficial ownership in financial institutions as per the amendment. FinCEN has strongly urged all stakeholders to submit written comments about this amendment by May 5, 2021. FinCEN will take cognizance of such written comments when executing the beneficial ownership reporting obligations.
Source: FinCEN, USA