U.S. Rep. McHenry urges GAO to audit FinCEN’s beneficial ownership system

U.S. Rep. Patrick McHenry (R-NC) is urging the U.S. Government Accountability Office (GAO) to audit the Financial Crimes Enforcement Network’s (FinCEN) Beneficial Ownership Secure System (BOSS).

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The BOSS registry is a critical national security tool designed to support law enforcement and the national security community in targeting bad actors that abuse the United States financial system by engaging in illicit activity.

However, McHenry and Republicans on the House Financial Services Committee are concerned about FinCEN’s ability to safeguard the BOSS data after it failed to properly manage critical access to information in its Bank Secrecy Act (BSA) database.

“As FinCEN continues to collect data from small businesses throughout the country, the agency must ensure Americans’ financial privacy in both the BSA database and BOSS are appropriately protected. FinCEN’s commitment to privacy and civil liberties should not be a question. To that end, GAO’s review will assist the Congress in understanding any deficiencies in FinCEN’s information management and security, including whether FinCEN is complying with congressional intent,” McHenry, who is chair of the House Financial Services Committee,” wrote in a letter to GAO officials.

This is a continuation of efforts by committee Republicans to ensure the implementation of the beneficial ownership reporting regime adheres to Congressional intent and that small businesses’ sensitive information is safeguarded by FinCEN.