Dept. of Treasury offers new guidance on Corporate Transparency Act compliance


This blog is part of a greater series on the Corporate Transparency Act as regulations and guidance are still being developed. NCBA CLUSA will publish updates and additional information as it becomes available.  

The second stage of Corporate Transparency Act (CTA) implementation through the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) went into effect on February 20, 2024. This latest guide details how FinCEN will implement the 2023 regulation governing who can access Beneficial Ownership Information (BOI) and how they may do so once BOI has been reported to FinCEN.  

The first phase of the CTA, which went into effect on January 1, 2024, requires U.S. businesses—including cooperatives— to report BOI to FinCEN. New businesses must file a BOI report within 90 days of registration unless covered under the exemptions. However, existing businesses have until January 1, 2025, to comply.  

Additional details – reporting requirements 

FinCEN released a second edition of the Small Entity Compliance Guide detailing the BOI Access and Safeguards Rule (Access Rule) to accompany this second phase of implementation.  

Who can access BOI information?
FinCEN will permit BOI access to Federal, State, local, and Tribal officials, and certain foreign officials. Additionally, financial institutions, including credit unions and community development financial institutions (CDFI’s), will have access to beneficial ownership information in certain circumstances, given they have obtained customer consent. However, financial institutions do not currently have access to BOI, as FinCEN is taking a phased approach to providing access.  

When can financial institutions access BOI?
Financial institutions may use BOI obtained from FinCEN to fulfill customer due diligence requirements. This includes any legal requirement or prohibition designed to counter money laundering, the financing of terrorism, or to safeguard U.S. national security if it is reasonably necessary for the financial institution to do so. Financial institutions cannot use BOI obtained from FinCEN for their general business or commercial activities, such as to assess whether to extend credit to a legal entity or for client development.  

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