WASHINGTON—NAFCU has offered several recommendations to the Financial Crimes Enforcement Network (FinCEN) regarding who must file reports and the information that is required to be provided. NAFCU sent its letter in response to a notice of proposed rulemaking (NPRM) implementing section 6403 of the Corporate Transparency Act (CTA), which governs beneficial ownership reporting requirements.
The CTA and Anti-Money Laundering Act (AMLA) were passed as part of the fiscal year 2021 National Defense Authorization Act and included language to require corporations, limited liability companies, and similar entities to disclose their true beneficial ownership information to FinCEN to create a new nonpublic database.
The NPRM describes who must file reports with FinCEN, what information must be provided, and when the report must be filed to identify the beneficial owner of the entity and the individuals who have filed an application to form the entity or registered it to do its business.
The Recommendations
In the NAFCU letter, Aminah Moore, regulatory affairs counsel, offered the agency several recommendations, calling for the agency to specifically:
- Ensure that examination and supervisory expectations are consistent with those of other federal regulators
- Establish data security protocols
- Maintain clarity and simplicity in its communications
Moore also urged FinCEN to adopt shorter reporting timeframes for existing companies and ensure verification of information provided.
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