On November 16, the Financial Crimes Enforcement Network (“FinCEN”) issued – again –expanded FAQs pertaining to beneficial ownership information (“BOI”) reportable under the Corporate Transparency Act (“CTA”). These expanded FAQs enlarge upon the previously expanded FAQs set forth by FinCEN in September.
The expanded FAQs of course cannot and do not expand upon the statutory and regulatory obligations already established by the CTA. In that sense, they do not add any additional insight, but rather repeat the rules already set by statute and regulation. With that in mind, we set forth below the new FAQs, some of which have particular relevance to attorneys and other so-called gatekeepers.
The CTA is scheduled to become effective on January 1, 2024. In the short time between now and then, FinCEN still must promulgate final regulations regarding access to the BOI database and propose regulations on the alignment between the CTA and the Customer Due Diligence (“CDD”) Rule applicable to banks. The time frame in which FinCEN must act is shrinking quickly.