WASHINGTON—A bipartisan group of lawmakers is raising concerns over what’s being called an “escape hatch” in proposed beneficial ownership information (BOI) reporting form.
The lawmakers pointing to the potential issue include House Financial Services Committee Chairman Patrick McHenry (R-NC) and Senate Banking Committee Chairman Sherrod Brown (D-OH), who have called on the Financial Crimes Enforcement Network (FinCEN) to amend the (BOI) reporting form. The lawmakers are citing concerns over companies being able to avoid providing critical information.
The lawmakers argued the proposed reporting form provides companies with an “escape hatch” by giving the option to answer required questions with “unknown” or “unable to identify/obtain” responses.
‘Disappointing’
“It is disappointing that this Notice deviates significantly from Congress’ intent,” the lawmakers wrote to Treasury Secretary Janet Yellen and FinCEN Acting Director Himamauli Das. “The beneficial ownership reporting regime was intended to be a strategic tool to target bad actors and nation-states like Russia and China who are abusing our financial system to engage in illicit activity.
“At the same time, Congress was clear regarding its intent to enhance the customer due diligence efforts of financial institutions, improve information available to law enforcement and other agencies, and minimize the burdens on small businesses tasked with reporting information to FinCEN,” the letter continued.
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