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FinCEN issues NPRM on implementation of beneficial ownership reporting
The Financial Crimes Enforcement Network (FinCEN) Tuesday issued a notice of proposed rulemaking (NPRM) implementing section 6403 of the Corporate Transparency Act, which governs beneficial ownership reporting requirements. While FinCEN expressed its intention to issue three sets of rulemakings to implement section 6403, this NPRM only implements the reporting requirements of section 6403.
The Corporate Transparency Act and Anti-Money Laundering Act were passed as part of the fiscal year 2021 National Defense Authorization Act and included NAFCU-sought language to require corporations, limited liability companies, and similar entities to disclose their true beneficial ownership information to FinCEN to create a new nonpublic database.
In addition, through the proposal, FinCEN notes that the agency is building and designing a new IT system – the Beneficial Ownership Secure System (BOSS) – to collect and provide access to beneficial ownership information.
For more information, view FinCEN’s fact sheet on the ANPR. NAFCU in May wrote to FinCEN on the implementation of the beneficial ownership information reporting provisions and will continue to keep credit unions informed as implementation of the Corporate Transparency Act moves forward.