BPI Welcomes FinCEN Rule Empowering Banks with Helpful Data to Fight Financial Crime

Washington, D.C. — The Financial Crimes Enforcement Network finalized a rule today giving banks access to a directory of business ownership information used to help fight money laundering and other financial crimes. This rulemaking is one of several key milestones FinCEN is undertaking as it works to fully implement the Corporate Transparency Act.

What we’re saying:

Gregg Rozansky, BPI senior vice president and senior associate general counsel, issued the following statement in response:

BPI strongly supports FinCEN’s effort to implement the Corporate Transparency Act effectively and in alignment with Congressional intent. Today’s rule recognizes the importance of protecting the privacy of business owners while giving banks and law enforcement access to helpful data to fight money laundering, sex trafficking and other financial crimes.

Additional background:

The “Access Rule” gives financial institutions, law enforcement and other authorized users conditional access to a directory of data containing information on who either owns a company, or holds equity interest in the company (i.e., a beneficial owner). This data is critical in the fight against financial crime because it makes it harder for illicit actors to hide behind anonymous shell companies to evade detection.

The Access Rule is the second of three key milestones of the Corporate Transparency Act.

  • The first milestone was in developing the beneficial ownership directory and establishing rules for how companies report this information to FinCEN.
  • The second milestone, the Access Rule, establishes who can access the directory and how the data can be used.
  • The third and final milestone relates to FinCEN’s modernization of the customer due diligence rule — which requires financial institutions to “know their customers” — to align with the CTA.

What’s next:

Businesses are required to begin reporting beneficial owner information on January 1, 2024. The Access Rule will not be effective until February 20, 2024.

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About Bank Policy Institute.

The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.

Media Contact

Austin Anton
Bank Policy Institute
austin.anton@bpi.com

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