Executive Summary
From January 1, 2024, U.S. and non-U.S. entities will have to comply with the new U.S. Financial Crimes Enforcement Network (“FinCEN”) Beneficial Ownership Information Reporting requirements to send beneficial ownership information to its new register. This puts into place requirements in the Corporate Transparency Act for what are called “reporting companies” to submit information on their beneficial owners to FinCEN. There is a complicated set of 20 exemptions to the new reporting requirements, described briefly in AIMA's summary. While the legislation creating the reporting requirements and register are in place, FinCEN is still working some of the details. These include, for example, the necessary IT systems and their security, how information is collected, the identifiers that will be used and access arrangements.
Please contact James Hopegood with any questions regarding these proposals.
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James Hopegood
Director, Asset Management Regulation
Timeline
AIMA has categorized these requirements as Low Priority/Medium Impact and they are therefore represented in lime green in the AIMA Regulatory Horizon Scan gantt chart.
Compliance Date | July 1, 2024 |
Effective Date | July 1, 2024 |
Process Rule Publication Date | TBD |
AIMA response to process proposal filed | February 15, 2023 |
AIMA summary of scoping requirements published | January 31, 2023 |
Process proposal published by FinCEN | December 16, 2022 |
Scoping Rule Publication Date | September 12, 2022 |
AIMA response to scoping proposal filed | February 7, 2022 |
Scoping proposal published by FinCEN | December 8, 2021 |
AIMA response to initial ANPRM submitted | May 4, 2021 |
FinCEN's initial ANPRM published | April 5, 2021 |
Congress adopts Coprorate Transparency Act | January 1, 2021 |
What's Required Webinar
With 20 separate exemptions that may apply to both domestic as well as non-U.S. entities, the new FinCEN Beneficial Ownership Information rule can be a challenge to navigate. A new webinar from AIMA, in partnership with Dechert, helps guide you through the key issues such as scope, information to report, deadlines as well as outstanding details still to come from FinCEN.
Recorded on May 4, 2023