ARTICLE
11 February 2022

FinCEN Considering Additional Comment Period On Beneficial Ownership Reporting Proposal

CW
Cadwalader, Wickersham & Taft LLP

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Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
As previously covered, the proposed rules specify who must file a beneficial ownership report, what information must be reported, and when a report is due.
United States Finance and Banking
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In a statement at the close of the comment period for FinCEN's proposed rulemaking ("NPRM") requiring the reporting of beneficial ownership information, FinCEN noted the number of comments received (over 230), and said it will consider further opportunity for supplemental comment in conjunction with the publication of a second proposed rulemaking on access to that information.

As previously covered, the proposed rules specify who must file a beneficial ownership report, what information must be reported, and when a report is due. In particular, the proposed rules require reporting companies to identify (i) the beneficial owners of the company and (ii) the individual who filed with governmental or tribal authorities the application to establish the company or register it for operation.

FinCEN reiterated that the beneficial ownership reporting NPRM was the first in a series of rulemakings that will implement the Corporate Transparency Act ("CTA"). FinCEN said that the next step in FinCEN's CTA rulemaking process will be the publication of proposed rules, anticipated later this year, on access to beneficial ownership information. FinCEN stated that any "reopened comment period [on the beneficial ownership reporting proposed rulemaking] would be published in the Federal Register in conjunction with the Access NPRM."

Primary Sources

  1. FinCEN Press Release: FinCEN Statement Regarding Beneficial Ownership Information Reporting and Next Steps

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