FinCEN Proposes Beneficial Ownership Reporting Rule
View Debevoise In Depth
Key takeaways:
- On December 7, 2021, FinCEN invited comment on a proposed rule that requires certain legal entities to report beneficial ownership information to FinCEN (the “Proposed Rule”). The Proposed Rule would implement the beneficial ownership reporting obligations required under the Anti-Money Laundering Act of 2020 (“AML Act”).
- The Proposed Rule describes who must file a beneficial ownership information report, what information must be reported and when a report is due. While many of the provisions of the Proposed Rule incorporate and reflect the statutory requirements in the AML Act, the Proposed Rule also clarifies and provides greater specificity for key aspects of the beneficial ownership reporting obligations.
- The Proposed Rule is the first of three rulemakings that FinCEN plans to undertake to implement the beneficial ownership reporting provisions of the AML Act. FinCEN will address separately the protocols for access to and disclosure of the beneficial ownership information filed with FinCEN and conforming revisions to the Customer Due Diligence (“CDD”) Rule that took effect in 2018.