This week, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule that permanently removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information to FinCEN under the Corporate Transparency Act.
Credit unions’ obligations under 31 CFR 1010.230 to collect a beneficial ownership certification and verify the identity of beneficial owners for legal entity customers remain unchanged. Credit unions may encounter members who are confused the credit union must still ask for this information. This change only affects a company’s obligation to report beneficial ownership information directly to FinCEN.
The final rule is effective on its publication in the Federal Register.
FinCEN also announced that it will delete previously reported information by U.S. persons — now exempt from the reporting requirements — from the beneficial ownership information database.
Under the final rule, foreign entities that are reporting companies will still be required to report beneficial ownership information for foreign individuals.
Resources
For more information, email Lisa Quaranta.
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:
Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!
Additionally, other League-member compliance resources include:
For more information, email Lisa Quaranta.
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