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NAFCU Wednesday sent members a Regulatory Alert to break down the Financial Crimes Enforcement Network's (FinCEN) notice of proposed rulemaking (NPRM) implementing section 6403 of the Corporate Transparency Act, which governs beneficial ownership reporting requirements.

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 in a newly created nonpublic database.

Through the Regulatory Alert, NAFCU highlights:

• the NPRM creates a new reporting requirement requiring “reporting companies” to provide certain beneficial ownership information to FinCEN via a new IT system – the Beneficial Ownership Secure System (BOSS); and
• FinCEN will initiate a separate rulemaking to amend the existing Customer Due Diligence (CDD) rule considering this NPRM to make it conform, in addition to a rulemaking regarding access to the BOSS system that will include credit union access.

NAFCU also notes that credit unions are not "reporting companies" under the definition and do not have to provide the required information to FinCEN for their members.

Comments on the NPRM are due to NAFCU Jan. 12 and can be submitted through the alert; comments are due to FinCEN Feb. 7.

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