ICBA urges FinCEN to modify proposed beneficial owner reporting form

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.

Previous News

  • CFPB expands survey of credit card issuers

    The Consumer Financial Protection Bureau announced an updated survey of credit card issuers designed to help consumers and families compare interest rates and other features when shopping for a new credit card.

    Image

    Mar 22, 2023

  • ICBA: Community Banks Remain Healthy and Vibrant

    Independent Community Bankers of America President and CEO Rebeca Romero Rainey today issued the following statement on today’s remarks from Treasury Secretary Janet Yellen.

    Image

    Mar 21, 2023

  • CFPB updates rules with agency contact info

    The Consumer Financial Protection Bureau issued a final rule to make non-substantive corrections and updates to federal agency contact information in Regulations B, E, F, J, V, X, Z, and DD.

    Image

    Mar 20, 2023


Related News Taxonomy