Last week, the Financial Crimes Enforcement Network (FinCEN) issued a final rule permanently removing the requirement that U.S. companies and U.S. persons report beneficial ownership information to the agency under the Corporate Transparency Act (CTA). Foreign entities registered to do business in the United States remain reporting companies, but they are no longer required to report information on U.S. person beneficial owners or company applicants. FinCEN also said it will delete previously reported information it reasonably believes was provided by U.S. persons.
IBAT members reached out seeking clarification last week, wondering if the change affects banks’ obligations to collect beneficial owner information. As the rule does not change the Customer Due Diligence Rule — banks’ obligation to identify and verify the beneficial owners of legal entity customers at account opening remains in place.
