The AML Act and the CTA substantially changed and modernized the U.S. Bank Secrecy Act (BSA) and related AML laws and regulations. However, because many of the new statutory provisions will require rule makings, reports, analyses, and other measures, its full impact remains to be seen and may be slowly realized over the next few years, says a report distributed by the Financial & International Business Association (FIBA).
The Final Rule, which takes effect Jan. 1, 2024, “is a significant step in the implementation of this enhanced BSA/AML regulatory framework”, FIBA said.
With the Final Rule, the United States now joins at least 30 other countries that have implemented some form of central register of beneficial ownership information. Entities that may qualify as reporting companies under the Final Rule should prepare their stakeholders.
FIBA highlights several points in its press release that are extensively detailed in the guide sponsored by GreenbergTraurig.
For example, Final Rule requires U.S. entities and foreign entities registered to conduct business in the U.S. to report beneficial ownership information to FinCEN unless they meet an enumerated exception.
The Association explains that beneficial owners include each individual who, directly or indirectly, either exercises substantial control over a reporting company, or owns or controls at least 25% of the ownership interests of a reporting company.
Moreover, individuals who create a reporting entity also are required to report personal identifying information to FinCEN.
For Gabriela Huerta