Lawmaker Criticizes Rollout of FinCEN’s BOI Reporting Rule
The Treasury Department’s Financial Crimes Enforcement Network should do a better job informing small businesses about its new beneficial ownership information reporting requirements (see 2401050023), Rep. Blaine Luetkemeyer, R-Mo., said in a Jan. 5 press release.
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Luetkemeyer, who chairs the House Financial Services Committee’s Subcommittee on National Security, Illicit Finance and International Financial Institutions, said most small businesses seem to be unaware of the new regulation, even though many of them will be affected by it.
“Unfortunately, FinCEN has fumbled the roll out of the new rule, making little effort to reach small businesses and educate them on what’s required,” he said. Existing “businesses have one year to comply with the rule, but … if you don’t know about it, you can’t comply.”
Treasury and FinCEN didn't respond to a request for comment on the lawmaker's statement. But a FAQ on FinCEN’s website says the agency “is engaged in a robust outreach and education campaign to raise awareness of and help reporting companies understand the new reporting requirements. That campaign involves virtual and in-person outreach events and comprehensive guidance in a variety of formats and languages, including multimedia content and the Small Entity Compliance Guide, as well as new channels of communication, including social media platforms. FinCEN is also engaging with governmental offices at the federal and state levels, small business and trade associations, and interest groups.”
The new rule, which is designed to help the government prevent sanctioned parties and others from hiding money or property in the U.S., will require certain companies to submit information on who owns and controls them (see 2312210017). FinCEN on Jan. 1 released a notice outlining reporting deadlines for new and existing companies and what information must be submitted.