WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) said it has taken another step to crack down on illicit finance and enhance corporate transparency by issuing a final rule that establishes the framework for access to and protection of beneficial ownership information (BOI).
According to FinCEN, the rule is being issued pursuant to the Corporate Transparency Act (CTA) and prescribes the circumstances under which BOI is reported in compliance with FinCEN’s Sept. 30, 2022 final BOI Reporting Rule may be disclosed to Federal agencies; state, local, tribal, and foreign governments; and financial institutions, and how it
The final rule is the second of three rulemakings planned to implement the CTA:
- The first of these rulemakings, the BOI Reporting Rule, requires certain corporations, limited liability companies, and other similar entities created or registered to do business in the United States to report information about their beneficial owners to FinCEN.
- Those reporting requirements take effect on Jan. 1, 2024, the same day that FinCEN will launch its beneficial ownership information technology system to securely collect, process, and store that information.
- FinCEN said it will undertake a third rulemaking to revise FinCEN’s Customer Due Diligence rule, as required by the CTA.
Effective in 2024
The final rule regarding access to BOI is effective on Feb. 20, 2024. Starting in 2024, FinCEN will begin to provide access to BOI in phases to authorized government agencies and financial institutions that meet the requirements of the final rule, FinCEN said.
Beneficial Ownership Information Access and Safeguards Final Rule Fact Sheet
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