HFS Chair Wants Audit of FinCEN's Data Security

House Financial Services Committee Chair Patrick McHenry requested a Government Accountability Office ("GAO") audit and analysis of FinCEN's data management of the Beneficial Ownership Secure System ("BOSS"). 

Chair McHenry emphasized that BOSS is a key tool to help law enforcement and the national security community combat illicit activities and protect the integrity of the U.S. financial system. He raised concerns about the collection of sensitive personal data from small businesses, including addresses, identification numbers, and legal representatives. Citing previous audits of FinCEN’s management of Bank Secrecy Act ("BSA") data, Mr. McHenry highlighted issues with delayed data suppression, improper management of user access, and potential unauthorized access to the BSA database, and he expressed doubts about FinCEN’s ability to adequately secure the BOSS system.

Chair McHenry requested that the GAO review (i) whether FinCEN improved its user access management capabilities, (ii) how it prevents BSA database issues from recurring in BOSS, and (iii) how many individuals and agencies have direct access to BOSS. Chair McHenry underscored the importance of FinCEN's commitment to privacy and civil liberties throughout the requested audit process.