Fincen issues small business guide to beneficial ownership rules
American Banker The Treasury Department's Financial Crimes Enforcement Network, or Fincen, issued a guidance to U.S. business entities that compliance with a beneficial ownership disclosure law will be required beginning in the new year.
Bloomberg News
WASHINGTON The Treasury Department's Financial Crimes Enforcement Network announced Monday most U.S. corporations, limited-liability companies and U.S. operations of foreign companies will need to report information about their beneficial owners as of the new year.
"This is a critical step towards implementing the Corporate Transparency Act, which will help the Treasury Department and Fincen expose bad actors abusing the U.S. financial system by hiding their identity behind opaque corporate structures," noted Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson in a press release.
While many companies will be subject to these new reporting requirements, Fincen's compliance guide released Monday further specifies exemptions for certain highly regulated entities, including banks, credit unions, government authorities, securities exchanges, insurance companies, and tax-exempt organizations, and others.
