Compliance: FinCEN seeks input on new CDD proposals
The Financial Crimes Enforcement Network (FinCEN) has issued an advance notice of proposed rulemaking (ANPR) to solicit public comment on questions pertinent to the implementation of the Corporate Transparency Act (CTA), enacted into law as part of the National Defense Authorization Act for Fiscal Year 2021 (NDAA) Jan. 1. A detailed look at the ANPR can be found on CUNA’s CompBlog. Comments are due by May 5.
Specifically, FinCEN seeks initial public input on procedures and standards for reporting companies to submit information to FinCEN about their beneficial owners as required by the CTA.
This ANPRM also seeks initial public input on FinCEN's implementation of the related provisions of the CTA that govern FinCEN's maintenance and disclosure of beneficial ownership information subject to appropriate protocols.
The purpose of the CTA is to require businesses to submit beneficial owner information to FinCEN when the business is being formed or registered with the appropriate state agency. It also authorizes FinCEN to disclose this information to certain financial institutions and government agencies, for appropriate purposes.
The CTA requires FinCEN to collect the required information in a form and manner that ensures the information is highly useful in confirming beneficial ownership information provided to credit unions when complying with their CDD requirements.