FinCEN Issues Final Rule Regarding Access to Beneficial Ownership Information
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently issued a final rule that establishes the framework for access to and protection of beneficial ownership information (BOI).
Issued pursuant to the bipartisan Corporate Transparency Act (CTA), this final rule prescribes the circumstances under which BOI reported in compliance with FinCEN’s Sept. 30, 2022, final BOI Reporting Rule may be disclosed to federal agencies; state, local, tribal, and foreign governments; and financial institutions, and how it must be protected. FinCEN additionally issued two interagency statements to give banks and non-bank financial institutions guidance on the interplay between the final rule and FinCEN’s existing Customer Due Diligence Rule.
The final rule is the second of three key rulemakings planned to implement the CTA. The first of these rulemakings, the BOI Reporting Rule, requires certain corporations, limited liability companies and other similar entities created or registered to do business in the U.S. to report information about their beneficial owners to FinCEN. Those reporting requirements take effect on Jan. 1, 2024, the same day FinCEN will launch its BOI technology system to securely collect, process and store that information. FinCEN will undertake a third rulemaking to revise FinCEN’s Customer Due Diligence rule, as required by the CTA.
The final rule regarding access to BOI is effective on Feb. 20, 2024. Starting in 2024, FinCEN will begin to provide access to BOI in phases to authorized government agencies and financial institutions that meet the requirements of the final rule.
For more information, see the final rule Fact Sheet.