Independent Banker - March 2023 - 33

PORTFOLIO
FOCUS COMPLIANCE
Beneficial ownership
rules: An update
Starting in 2024, banks will be required to collect beneficial ownership
information on accounts they maintain. Here's what's changing and
what it means for community banks. By Mary Thorson Wright
banks have been required since May
2018 to collect beneficial ownership
information on accounts they open
and maintain. At a minimum, that
information would include name, date
of birth, address and an identification
number, such as a taxpayer or social
security number. Banks generally
collect the information through a
certification form from the individual
opening the account and information
provided by the individual on behalf
of the legal entity.
BOI: What to expect
fter a final ruling this past
fall, the U.S. Treasury
Financial Crimes Enforcement
Network's (FinCEN) 2022 Beneficial
Ownership Information Reporting
Rule will require banks to establish
and maintain written procedures
that are reasonably designed
to identify and verify beneficial
owner(s) of legal entity customers
A
and to include such procedures
in the anti-money laundering
compliance program.
Beneficial ownership of a legal
entity is determined by standards of
control and ownership of the entity as
described in the rule.
Under an amendment to the Bank
Secrecy Act, the FinCEN Customer
Due Diligence Final Rule (CDD Rule),
On Sept. 29, 2022, FinCEN issued a
final rule that establishes beneficial
ownership information (BOI)
reporting that will require covered
companies to report information
about their respective beneficial
owners to FinCEN effective Jan.
1, 2024. FinCEN must maintain
a registry of this information in
a confidential, secure and nonpublic
database and is authorized to
disclose the information to financial
institutions to facilitate compliance
with CDD requirements. The rule and
certain anticipated subsequent rules
by FinCEN are expected to provide
direct benefits to law enforcement
and other authorized users.
The new BOI rule will become
effective Jan. 1, 2024. Reporting
companies created or registered
before Jan. 1, 2024, will have one
year (until Jan. 1, 2025) to file
their initial reports, while reporting
companies created or registered
after Jan. 1, 2024, will have 30 days
after creation or registration to file
their initial reports. Once the initial
report has been filed, both existing
and new reporting companies
will have to file updates within 30
days of a change in their beneficial
ownership information.
The 2016 beneficial ownership rule
requires banks to collect identifying
independentbanker.org // 33
Illustration by Yaroslav Danylchenko/Stocksy

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Independent Banker - March 2023

Table of Contents for the Digital Edition of Independent Banker - March 2023

Table of Contents
Independent Banker - March 2023 - Intro
Independent Banker - March 2023 - Cover1
Independent Banker - March 2023 - Cover2
Independent Banker - March 2023 - Table of Contents
Independent Banker - March 2023 - 2
Independent Banker - March 2023 - 3
Independent Banker - March 2023 - 4
Independent Banker - March 2023 - 5
Independent Banker - March 2023 - 6
Independent Banker - March 2023 - 7
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Independent Banker - March 2023 - 33
Independent Banker - March 2023 - 34
Independent Banker - March 2023 - 35
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Independent Banker - March 2023 - Cover3
Independent Banker - March 2023 - Cover4
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