Skip to content
Article

The Corporate Transparency Act Puts Spotlight on Beneficial Ownership Information

February 16, 2024 | 1 minutes reading time | By Jim Romeo

New AML-related compliance burdens fall on business entities and banks; “disclosing of essential information for the greater good” of corporate and financial system integrity.

For the ever-widening battle against money laundering and financial crime, new Corporate Transparency Act regulations are designed to shed light on illicit shell companies and other maneuvers, including suspected terrorist financing, that have eluded law enforcement.

For business entities in the U.S. that are required to register under the reporting rules for beneficial ownership information (BOI) – an estimated 33 million this year alone – the work has only just begun.

The act, which passed in 2021 with bipartisan congressional and considerable private-sector support, is implemented by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The agency’s BOI Regulation was formally adopted last September for reporting to begin January 1. A final rule in December laid out database protection and disclosure practices along with “two interagency statements to give banks and non-bank financial institutions guidance on the interplay between the final rule and FinCEN’s existing Customer Due Diligence Rule.”

 FinCEN Director Andrea Gacki

“This final rule is a significant step forward in our efforts to protect our...

to access this content.

Become a GARP Member to Unlock Exclusive Risk Insights and More!

  • Access timely articles, thought leadership, and an archive of on-demand webcasts, event recordings, and Chapter meeting presentations in our Member Multimedia Library.
  • Get regulatory capital data for global and regional banks in North America, Europe, Asia, and Africa through our Pillar 3+ data analytics platform from the GARP Benchmarking Initiative (GBI®).
  • Gain priority registration to attend any worldwide Chapter meeting for free, as well as preferential rates for GARP events and access to local members-only dinners and professional networking opportunities.
  • Receive comprehensive access via our digital GARP Learning platform to the latest curriculum readings, videos, end of chapter practice questions, and more for the program(s) of which you passed the exam(s).

Topics: Regulation & Compliance

Trending

Event

GARP 2025 Financial Risk Symposium

March 6

With today’s ongoing geopolitical tensions, macroeconomic uncertainty,...

Regulation & Compliance, Financial Markets, Model Risk, Geopolitical, Innovation, Risks & Risk Factors
View Event