On December 21, 2023, FinCEN issued a final rule that establishes the framework for access to and protection of beneficial ownership information (BOI). The final rule prescribes the circumstances under which BOI reported in compliance with FinCEN’s September 30, 2022 final BOI Reporting Rule may be disclosed to Federal agencies; state, local, tribal, and foreign governments; and financial institutions, and how it must be protected.
FinCEN Director Andrea Gacki said the following in a statement:
“This final rule is a significant step forward in our efforts to protect our financial system and curb illicit activities. BOI can provide essential information to law enforcement, intelligence, and national security professionals as they work to protect the United States from bad actors who exploit anonymous shell companies to engage in money laundering, corruption, sanctions and tax evasion, drug trafficking, fraud, and a host of other criminal offenses with impunity, while legitimate businesses suffer from their misdeeds.”
The final rule is one of three rulemakings to implement the CTA. The first rule, the BOI Reporting Rule, requires certain US entities to report beneficial owner info to FinCEN. Reporting starts on January 1, 2024, when FinCEN launches its tech system to securely collect and store that info. FinCEN will revise its Customer Due Diligence rule in a third rulemaking as required by the CTA.
FinCEN also issued 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. In both interagency statements, FinCEN clarified that the Access Rule does not create a new regulatory requirement for banks to access BOI from the BO IT System or a supervisory expectation that they do so.
Read FinCEN’s announcement here.
A fact sheet on the BOI Access and Safeguards Final Rule can be found here.