Can Fincen deliver on promised regulatory relief?

Nikhil Gore spoke with American Banker regarding the Treasury Department's beneficial ownership rule finalized last week as part of the Corporate Transparency Act that requires businesses to report their beneficial ownership information directly to a registry database maintained by the Financial Crimes Enforcement Network. However, Fincen has yet to build out the database, or introduce rules about who can access it.

“One of the most significant roadblocks is the manpower and resources that analysts say is required to build out that database,” Nikhil explained. “It would be difficult for Fincen, at this point, to develop the technological infrastructure to receive, store and provide regulated access to the database before companies are required to complete their beneficial ownership information on January 1, 2025.”

What happens if the database information contradicts banks' internal resources and to what degree banks will have access to the database are among the significant questions that remain unanswered until Fincen pursues its next two rulemakings on the CTA, Nikhil continued.

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