The Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM) on December 16, 2022, regarding beneficial ownership information (BOI) access and safeguard provisions of the Corporate Transparency Act (CTA). The Access NPRM proposes who may receive BOI, how the received information may be used, how that information should be secured, and the penalties for violations.
The CTA will authorize FinCEN to disclose BOI under conditions to general categories of recipients which include financial institutions using BOI to comply with customer due diligence requirements and federal regulators and regulatory agencies acting in a supervisory capacity. Protocols for safeguarding the received information vary by recipient category based on the level of access each has to the BOI. The CTA provides for both criminal and civil penalties for noncompliance.
The NPRM also includes amendments to the reporting regulations concerning the use of a FinCEN identifier issued to an entity.
Written comments for the proposed rules are due by February 14, 2023.
To view the full details of the proposed rules concerning the Beneficial Ownership Information Access and Safeguards, and Use of FinCEN Identifiers for Entities, please visit this link.