American Bankers Association Reverses Course in Calling for Withdrawal of FinCEN's SWACCA-Supported Proposed Rule Regarding Beneficial Ownership Access
In an apparent reversal of the banking industry’s previous strong support of beneficial ownership disclosure to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), the American Bankers Association (ABA) is urging withdrawal of FinCEN’s proposed rule detailing what entities will have access to the FinCEN beneficial ownership database, for what purposes they can access it, and the safeguards they must comply with when accessing it.
SWACCA supported the proposed rule in comments it submitted last week. The ABA apparently feels that the proposed rule includes unduly burdensome safeguards to protect the personal information of individual beneficial owners disclosed in the database and that these safeguards deprive the system of the cost-saving efficiency the bankers hoped it would allow them to realize when they agreed to support the enactment of this disclosure regime through passage of the Corporate Transparency Act.
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