December 22, 2023

The Financial Crimes Enforcement Network (FinCEN) published a final rule regarding access to beneficial ownership information (BOI). SWACCA engaged in vigorous advocacy on this rule, including submitting comments on this rulemaking on February 23, 2023, and we are pleased that the final rule reflects several provisions for which SWACCA advocated.

In particular, the final rule retains SWACCA-supported provisions defining “law enforcement activity” to include both criminal and civil investigations and actions. In addition to SWACCA’s support for this provision in our February 2023 comments, this was also a key recommendation SWACCA made in its May 2021 comments when FinCEN requested input on implementation of the Corporate Transparency Act’s beneficial ownership reporting regime. The final rule also heeded SWACCA’s February 2023 comments and related advocacy by extending authorization to access beneficial ownership information to all federal, state, and local regulatory agencies engaged in investigations of wage theft and tax and payroll fraud associated with the misclassification of workers as independent contractors. SWACCA supports this interpretation to the extent that it will allow agencies like the U.S. Department of Labor’s Wage and Hour Division and other federal, state, and local enforcement agencies to obtain beneficial ownership information for investigations of tax fraud and other legal violations commonly associated with the misclassification of workers in the construction industry. Finally, the final rule also adopted SWACCA’s argument that FinCEN should define the court authorization state, local, and Tribal law enforcement agencies must obtain to use beneficial ownership information in a criminal or civil investigation more broadly than just a court order to prevent impeding time sensitive investigations.

The final rule is effective beginning February 20, 2024.

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