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Comments Due: Beneficial Ownership Information Reporting Requirements

Section 6403 of the Corporate Transparency Act (CTA), enacted into law as part of the National Defense Authorization Act for Fiscal Year 2021, places three obligations on the Financial Crimes Enforcement Network (FinCEN):

  1. Establish a beneficial ownership information database to help with anti-money laundering;
  2. Implement the protocols for access to and disclosure of beneficial ownership information; and
  3. Revise the existing regulation concerning customer due diligence requirements for financial institutions at 31 CFR 1010.230 (CDD Rule).

To address its first obligation under Section 6403, FinCEN is issuing this Notice of Proposed Rulemaking (NPRM) that would require certain entities to file reports identifying two categories of individuals:

  1. the beneficial owners of the entity; and
  2. individuals who have applied with specified governmental authorities to form the entity or register it to do business.

Requests for comment are due February 7, 2022. Read more here

  • February 7, 2022
  • Time: All Day