CrimProf Blog

Editor: Kevin Cole
Univ. of San Diego School of Law

Friday, January 20, 2023

Lidstone on the Corporate Transparency Act

Herrick K. Lidstone has posted The Federal Corporate Transparency Act: More Answers are Proposed on SSRN. Here is the abstract:

The federal Corporate Transparency Act was adopted on January 1, 2021, but the rule-making process has been extremely slow. FinCEN adopted the first set of rules in September 2022 concerning beneficial ownership information (BOI) reporting, more than ten months after being initially proposed.

In December 2022, FinCEN proposed a second set of rules regarding access by authorized persons to the BOI reports. The proposed regulations would implement the protocols to protect the security and confidentiality of the BOI as required by the CTA to protect sensitive personal identifiable information (“PII”) reported to FinCEN in the BOI reports. The NPRM explains the circumstances in which specified recipients would have access to BOI and outlines data protection protocols and oversight mechanisms applicable to each recipient category.

It is intended that the disclosure of BOI to authorized recipients in accordance with appropriate protocols being defined by FinCEN and with some additional oversight will help law enforcement and national security agencies prevent and combat money laundering, terrorist financing, tax fraud, and other illicit activity, as well as protect national security.

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