The Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department has issued an Advance Notice of Proposed Rulemaking (ANPRM to invite public comment on the beneficial ownership information reporting provisions of the newly-enacted Corporate Transparency Act (CTA).
The ANPRM is the first in a series of regulatory actions that the FinCEN will undertake to implement the CTA.
The CTA is included within the Anti-Money Laundering Act of 2020 (AML Act). The AML Act, in turn, is part of the National Defense Authorization Act for Fiscal Year 2021, which became law on 1 January 2021.
The CTA amends the Bank Secrecy Act (BSA) to require corporations, limited liability companies (LLCs) and similar entities to report certain information about their beneficial owners (i.e. the individual natural persons who ultimately own or control the companies).
With the ANPRM, the FinCEN seeks initial public input on how the FinCEN should implement a system for reporting beneficial ownership information, consistent with the requirements of the CTA, to maximize benefits while minimizing burdens on reporting companies.