WASHINGTON — Republicans on the House Financial Services Committee criticized the Financial Crimes Enforcement Network for what they said was a lack of clarity in its
Chair of the House Financial Services Committee Rep. Patrick McHenry, R-N.C., Chair of the House Committee on Small Business Rep. Roger Williams, R-Texas, and Rep. Blaine Luetkemeyer, R-Mo., raised concerns that there has not been enough information disseminated to small businesses, who will need to comply with the rule when it goes into effect at the beginning of 2024.
"It is concerning that with six months until its effective date, Fincen has yet to lay out a clear plan for engagement," the lawmakers wrote in a letter. "It is highly unlikely that the 32 million small business owners know what Fincen is let alone know to look for a press release on Fincen's website. As a result, there is a real possibility that these small businesses could be held civilly or criminally liable for noncompliance."
The rule is meant to make it possible for Fincen to compile beneficial ownership information of certain U.S. and foreign reporting companies in a Beneficial Ownership Secure System, or BOSS. However, a group of state attorneys general, Republicans and anti-corruption advocates have said that the rule is overly complex, and will be difficult for companies, including banks and small businesses, to follow.
Republicans' most recent complaints are
"As currently conceived, the Registry will be of limited, if any, value to banks," the American Bankers Association wrote in a press release in February. "The proposal creates a framework in which banks' access to the Registry will be so limited that it will effectively be useless, resulting in a dual reporting regime for both banks and small businesses."
