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NAFCU Reg Alert examines proposed beneficial ownership access
NAFCU sent members a Regulatory Alert yesterday outlining the Financial Crimes Enforcement Network’s (FinCEN) proposed rule to implement the regulations that will govern access to and safeguards of beneficial ownership information (BOI).
Through the Regulatory Alert, NAFCU highlights:
· FinCEN does not plan to allow financial institutions to run broad or open-ended searches in the beneficial ownership IT system or to obtain multiple search results;
· any person that receives BOI is not allowed to disclose it unless authorized by FinCEN; and
· FinCEN intends to update the customer due diligence (CDD) rule via future rulemaking.
NAFCU previously expressed support for the first of three rules implementing the Corporate Transparency Act that describes who must file reports with FinCEN, what information must be provided, and when the report must be filed to identify the beneficial owner of the entity and the individuals who have filed an application to form the entity or registered it to do business.
Comments regarding this proposed rule are due to NAFCU Jan. 30; comments are due to FinCEN Feb. 14.