FinCEN to Propose Beneficial Ownership Rule by Month’s End, Says Regulatory Agency

By Kira Zalan

U.S. officials will formally propose this month a long-planned rule that would require banks to identify the owners of their corporate clients, according to an Office of Management and Budget schedule. The U.S. Treasury Department disclosed intentions in March 2012 to draft a formal plan that could ask financial institutions to identify the individuals who "directly or indirectly" own more than 25 percent of a corporate client's equity interest. Banks could additionally need to verify identifying documentation and whether a named individual truly controls the corporate entity. A source of industry debate and anxiety ahead of its unveiling, the proposal...