On October 12, 2022, FinCEN Acting Director Himamauli Das spoke at the ACAMS AML Conference where he talked about FinCEN’s implementation plan for the Corporate Transparency Act (CTA), particularly the recently issued final rule on beneficial ownership information reporting requirements. Das highlighted the importance of implementing an effective AML/CFT compliance program and how it helps the agency find and stop illicit activities.
Das briefly talked about the current status of FinCEN’s rulemaking to implement the CTA. The beneficial ownership information reporting rule, which is the first of three rulemakings, was finalized and goes into effect on January 1, 2024. The Access Rule, which will lay out the protocols for access to the beneficial ownership database by law enforcement and by financial institutions, is currently at the proposed rule stage. The third rule, the Customer Due Diligence (CDD) rule, will be revised no later than one year after the effective date of the reporting rule as required by the CTA.
Das spent some time talking about the reporting rule, which describes who must file a BOI report, what information must be reported, and when a report is due. According to him, FinCEN made every effort to make sure the final rule is consistent with the goals of the CTA, which is to develop a database that is highly useful to law enforcement, while ensuring that burden on businesses is minimized. Das also provided a brief overview of some of the rule’s key provisions. He stressed the importance of the rule’s implementation and that FinCEN is working to develop guidance and educational materials to help reporting companies prepare to file their beneficial ownership information reports.
A copy of Das’ prepared remarks can be found here.
