FinCEN Proposes Rules on Access to Beneficial Ownership Registry
FinCEN proposed new regulations on access and safeguards to beneficial ownership information under the Corporate Transparency Act ("CTA"). The proposed rule would establish criteria as to which entities can access the beneficial ownership information that FinCEN collects.
Under the proposal, parties that may seek access to beneficial ownership information, along with relevant restrictions, include:
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federal law enforcement agencies engaged in national security, intelligence or law enforcement activity;
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state, local and tribal law enforcement agencies, pursuant to the court having authorization to seek the information in an ongoing criminal or civil investigation;
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a federal agency on behalf of a foreign law enforcement agency, if the request is made (i) pursuant to an international treaty or (ii) via request from an agency in a trusted jurisdiction;
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financial institutions, if the information is used for purposes of complying with customer due diligence requirements under applicable law and subject to consent from the reporting company;
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Treasury personnel in the course of their work; and
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other regulatory agencies, if the information is used (i) to assess compliance with customer due diligence requirements or (ii) in an enforcement action.
The proposed rule requires any institution that plans to use beneficial ownership information to have controls in place to securely store the information and limit its access.
Comments on the proposal are due by February 14, 2023.
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