ICBA endorses bill to coordinate beneficial ownership rulemakings

ICBA called on Congress to advance legislation to coordinate and strengthen recent Financial Crimes Enforcement Network anti-money laundering rulemakings.

Statement for the Record: In a statement for the record for a House Financial Services Committee hearing on FinCEN oversight, ICBA expressed support for Chairman Patrick McHenry’s (R-N.C.) Protecting Small Business Information Act (H.R. 4035). The legislation would require FinCEN to finalize all rulemakings required under the 2020 Corporate Transparency Act before any rules take effect.

Bill Details: ICBA said in the statement that:

  • McHenry’s bill would promote consistency among the rulemakings by synchronizing the effective dates.

  • The bill also would ensure FinCEN finalizes its Customer Due Diligence “congruence” rule—which requires the agency to reduce unnecessary or duplicative regulatory burdens—before implementing other CTA rules.

  • FinCEN should withdraw its requirement that banks collect beneficial ownership information now that the agency is required to collect this information directly from reporting companies.

Background: The CTA requires most U.S. corporate entities to report to FinCEN information about their beneficial owners—those who ultimately own or control the company. FinCEN has issued four final rules implementing the CTA, which specify who must file a report of beneficial ownership, what information must be provided, and when a report is due.

FinCEN Testimony: Testifying during the House hearing, FinCEN Director Andrea Gacki said the agency’s highest priority has been successfully implementing reporting requirements for beneficial ownership information, or BOI. Gacki also said FinCEN is working to finalize a study on streamlining BSA reporting requirements and is considering automating low-value Suspicious Activity Reports and modifying Currency Transaction Report standards.

BOI Access Rule: During the hearing, lawmakers including Rep. Joyce Beatty (D-Ohio) applauded FinCEN’s December rule that broadened access for banks to utilize the BOI database. That rule prescribes the circumstances under which BOI may be disclosed to agencies, governments, and financial institutions as well as how this information must be protected.