FinCEN Proposes Rule to Grant Access to Beneficial Ownership Information Registry

5 January 2023
View Debevoise In Depth
Key Takeaways:
  • On December 16, 2022, FinCEN issued a proposed rule to govern access by certain governmental entities and financial institutions to beneficial ownership information that will be collected by the federal government. The comment period for the proposed rule is open until February 14, 2023.
  • The proposal is the second of three rules to implement the beneficial ownership reporting provisions of the Corporate Transparency Act and follows FinCEN’s September 30, 2022 final rule specifying which entities must report information, what information must be reported and when a report is due.
  • We expect that many financial industry participants and entities that may need to report information to FinCEN will comment on the proposed rule, which addresses the entities that may access beneficial ownership information, limits on use and disclosure, security and confidentiality safeguards and penalties for failing to follow applicable requirements. In this Debevoise In Depth, we provide a brief background on the proposal and highlight certain key provisions.