March 22, 2023
ICBA called on the Financial Crimes Enforcement Network to modify its proposed form for collecting beneficial ownership information from reporting companies.
Background: Reporting companies subject to FinCEN’s September 2022 final rule must report identifying information about their beneficial owners, the company applicant, and the entity itself directly to FinCEN.
ICBA Comments: In a comment letter, ICBA said:
It opposes the requirement that banks collect beneficial ownership information, or BOI, but supports ensuring banks have access to this information collected by FinCEN.
While bank access to BOI would enhance their customer due diligence process, FinCEN’s proposed form for collecting such information is problematic.
FinCEN’s proposed form would allow reporting companies to skip providing required information in 29 places on the form, including for reporting full legal names, birthdays, and addresses, allowing companies to evade reporting requirements.
FinCEN should remove all 29 “check if you are not able to obtain” references from the reporting form.
Requiring financial institutions to collect all required BOI without exception while allowing reporting companies to skip these requirements would be wholly prejudicial.
FinCEN should not require banks to “chase down” missing BOI to assist FinCEN in fulfilling its CTA obligations.
Previous Comments: In letters to FinCEN on beneficial ownership reporting and the agency’s broader Bank Secrecy Act review, ICBA called on the agency to withdraw bank beneficial ownership collection and verification requirements now that it is required to collect this information directly from reporting companies.