FinCEN underestimates beneficial ownership collection burden: ICBA

The Financial Crimes Enforcement Network’s estimated burden of complying with its final rule on accessing beneficial ownership information does not accurately reflect the demands of collecting this information, ICBA said.

ICBA Comments: In a comment letter to the agency, ICBA said:

  • FinCEN’s estimates on the burden of obtaining, documenting, and certifying information requests fail to factor in multiple steps, such as developing procedures, updating documentation, and training personnel.

  • Financial institutions should not be required to collect beneficial ownership information, or BOI, which is duplicative now that BOI is submitted directly to FinCEN.

BOI Collection: ICBA has repeatedly called on FinCEN to withdraw its requirement that banks collect BOI 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.