Lawmakers advocate for Corporate Transparency Act implementation

A bipartisan group of lawmakers is seeking the Financial Crimes Enforcement Network’s (FinCEN) enhanced implementation of the Corporate Transparency Act to prevent incorporation laws abuse.

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U.S. Sens. Sheldon Whitehouse (D-RI), Chuck Grassley (R-IA), Ron Wyden (D-OR), Marco Rubio (R-FL), and Elizabeth Warren (D-MA) submitted a comment to the FinCEN regarding its latest proposed rule implementing the Corporate Transparency Act.

The lawmakers forwarded correspondence to FinCEN Acting Director Himamauli Das regarding Beneficial Ownership Information (BOI) Access and Safeguards, and Use of FinCEN Identifiers for Entities.

“While we appreciate the time and effort you have put into the implementation of this critical law, we have concerns that this proposed rule strays from congressional intent and erects unnecessary and costly barriers to accessing beneficial ownership information (BOI) that risk undermining the utility of the beneficial ownership directory,” the legislators wrote. “We encourage you to revise the rule to ensure it tracks closer to the text of the statute, remove excessive barriers to accessing the directory by authorized recipients and enhance the utility of the directory.”

The lawmakers have issued FinCEN a series of recommendations regarding Corporate Transparency Act implementation that include the areas of access and use; financial institutions; the Office of Inspector General (OIG) and the Comptroller General of the United States; and verification.