FinCEN Finalizes Landmark Beneficial Ownership Reporting Rule
View Debevoise In Depth
Key takeaways:
- On September 30, 2022, FinCEN published its long-anticipated final rule (the “Final Rule”) implementing the beneficial ownership information reporting requirements of the Corporate Transparency Act that will require legal entities created or registered to do business in the United States to report beneficial ownership information into a centralized governmental database.
- The creation of a corporate registry at FinCEN signals a landmark change to U.S. corporate law, which international bodies have long criticized for insufficient transparency. Tens of millions of legal entities, including certain holding companies, special purpose entities and investment vehicles, likely will be impacted by the Final Rule.
- In this Client In Depth, we describe the Final Rule’s key provisions (who must report beneficial ownership information to FinCEN, what information must be reported and when reports are due) and the implications for reporting entities and their owners, control persons and formation or registration agents.