Banks and other financial institutions will have access to a new, national database of beneficial ownership information only in narrowly defined circumstances under a rule proposed Thursday by the U.S. Treasury's Financial Crimes Enforcement Network. That's no surprise, analysts told ACAMS moneylaundering.com, as lawmakers directed the bureau to strictly limit who could obtain beneficial ownership information nearly two years ago when they enacted the Corporate Transparency Act, or CTA, which aims to reform current due-diligence requirements to more effectively curb the use of legal entities for illicit finance. "[FinCEN's] discretion is limited by the statute, so they couldn't really make...
U.S. officials updated bankers on their plans for governing access to beneficial ownership data, acting against wholesale de-risking and possibly revising sanctions against Russian oil at an anti-financial crime conference in Washington, D.C., this week.
U.S. officials finalized a rule Thursday crafted to prevent criminals from using legal entities to disguise themselves from financial institutions and transfer funds anonymously, launder their profits into real estate and exercise control over legitimate companies for nefarious purposes.
The Financial Crimes Enforcement Network issued a notice of proposed rulemaking concerning the implementation of the beneficial ownership information access and safeguard provisions as required under the Corporate Transparency Act.
The Financial Crimes Enforcement Network issued a final rule to establish beneficial ownership information reporting requirements for most companies pursuant to the Corporate Transparency Act, which aims to help prevent money laundering, terrorist financing, corruption, and other illicit activity.