FinCEN to challenge proposal on helpful possession database this 12 months

As the Financial Crimes Enforcement Network works to implement the Corporate Transparency Act—an ABA-advocated provision of the Anti-Money Laundering Act of 2020—Acting Director Him Das at the moment advised lawmakers it should publish a second discover of proposed rulemaking this 12 months “that will propose regulations governing access to beneficial ownership information by law enforcement, national security agencies, financial institutions and others.” The NPRM will comply with a earlier proposal concerning the implementation of the helpful possession reporting necessities.

FinCEN additionally plans to challenge a 3rd proposal revising the shopper due diligence regulation for monetary establishments “no later than one year after the effective date of the final reporting rule,” as required by statute, Das stated in written testimony submitted forward of a House Financial Services Committee listening to. “The CTA directs that the revisions should bring the CDD regulation into conformance with the beneficial ownership rules under the CTA and reduce unnecessary or duplicative requirements, among other things,” he stated. “We are considering all options as we develop the Access Rule NPRM, and look forward to receiving public comments on our proposal when it is issued.”

Das famous, nonetheless, that as FinCEN’s priorities have shifted—significantly in mild of Russia’s invasion of Ukraine and associated sanctions exercise—“limited resources have presented significant challenges to meeting the implementation requirements of our expanded mandate under the AML Act, including the CTA’s beneficial ownership requirements. . . . . we are missing deadlines, and we will likely continue to do so.”


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