Proposal to Revamp State Beneficial Owner Disclosure Rule Falls Short, Some Say

By Matt Squire

A proposal to strengthen state requirements for ownership disclosure during company formations falls short of the expectations outlined by federal and international governing bodies, say compliance experts. The National Association of Secretaries of State (NASS) issued a number of recommendations in July to create more transparency on the beneficial ownership of companies, including amending uniform business entity laws. In a report outlining the proposals, the association estimated the changes could take almost two years to complete. The recommendations do not require states to conduct background checks during the incorporation process said Robert Serino, counsel with Washington, D.C.-based law firm Buckley...