USA’s Financial Crimes Enforcement Network (FinCEN) has proposed a new rule regarding the reporting of beneficial ownership information as per the US Corporate Transparency Act (CTA). This rule will help prevent illicit use of the US financial system and abuse of legal entities like shell companies to conceal criminal proceeds.
The CTA provided guidelines on the reporting of beneficial ownership information by certain types of corporations, limited liability companies, and other similar US-based entities. The proposed rule implements these reporting requirements by addressing the who, when and what of reporting beneficial ownership information. FinCEN believes that collecting this information and sharing it with law enforcement, financial institutions, and other authorities will help prevent criminal activity.
FinCEN is soliciting public comment on the proposed rule. In particular, FinCEN is encouraging all stakeholders to submit written comments during the period of 60 days following the announcement of the proposed rulemaking.
Source: FinCEN, USA