FinCEN Director Asks for Input on Corporate Transparency Act Rules

FinCEN Director Kenneth Blanco in prepared remarks earlier this week spoke about FinCEN's upcoming notice of proposed rule making to adopt regulations under the Corporate Transparency Act of 2020.  

As described in an earlier post, the 2020 Corporate Transparency Act has been called "the most sweeping anti-corruption reforms the country has seen in decades." 

Once implemented, the new law will require all non-exempt businesses to file a report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) that identifies each beneficial owner of the company.  The report will require each non-exempt business to file the name, address and other identifying information for each of its major beneficial owners.  Because of the sensitivity of this kind of personal information, small business owners will be concerned regarding the security and integrity of their private data.

FinCEN has not yet published its notice of proposed rule-making but Director Blanco's statement suggests that the effort will get underway shortly.  The effort will likely receive substantial attention once the effort gets started.  

Update: On September 29, 2022, FinCEN issues its Final Rule on beneficial ownership reporting, setting the implementation date at January 1, 2024.