The American Bankers Association and 51 State Bankers Associations have released an open letter with proposed actions to FinCEN regarding the latest update on Beneficial Ownership (BO). FinCEN recently proposed limitations on how information from the BO Registry could be accessed and used, to which the associations argued that those limitations would instead nullify the intended purpose of the registry.

The associations letter set out new proposals to:

  • Meet other requirements of the Bank Secrecy Act;
  • Permit them to transmit that information across their respective enterprises, including beyond U.S. borders;
  • Revise the proposal to clarify that use of the database is voluntary;
  • Consider modern technological solutions that would provide a secure and efficient means of accessing the Registry;
  • Include a safe harbour from liability for financial institutions that use BOI obtained from the Registry; and
  • Amend the CDD Rule to clarify that banks are not required to collect and maintain BOI in all cases

As the conversation of beneficial ownership continues to be discussed in various jurisdictions, firms should stay up to date with relevant insights in order to ensure they are remaining compliant.

https://www.aba.com/-/media/documents/comment-letter/jointltrbeneficialownership20230214.pdf?rev=694b2e208d43431d8d54d5bdcfdfed1d

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