Proposed Timelines For Upcoming Key Rulemakings Projected Throughout The Rest Of 2023.
Late last month, the Financial Crimes Enforcement Unit (FinCEN) of the U.S. Department of the Treasury released its 2023 Spring Rulemaking Agenda.
Outlining timelines for upcoming announcements slated for 2023, FinCEN continues to focus on issuing rulemakings related to the Anti-Money Laundering (AML) Act of 2020 and the Corporate Transparency Act (CTA).
Scheduled to go into effect January 2024 for all new businesses and January 2025 for all existing businesses, the CTA will require small businesses with fewer than 20 employees to register and list the names of all the beneficial owners of their company in a database to be maintained by FinCEN, known as the Beneficial Ownership Secure System (BOSS).
According to the FinCEN rulemaking schedule, in September, the agency is due to release its final rule regarding beneficial ownership information, including its plan for accessing and safeguarding the prospective BOSS database.
In theory, the CTA is aimed at limiting money laundering. While the small-business community agrees money laundering is a problem that should be addressed, the CTA targets only small businesses requiring them to provide this information and be subject to scrutiny. Additionally, this information is already being collected by other agencies—they simply need to share that information.
In addition to NSBA’s lawsuit against Treasury to stop implementation of the CTA, NSBA is working with various coalitions and Members of Congress to pass legislation repealing or, at a minimum, delaying the effective date.
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Additionally, FinCEN is expected to issue a Notice of Proposed Rulemaking (NPRM) this month, implementing section 6314 of the AML Act and the Anti-Money Laundering Whistleblower Improvement Act regarding whistleblower incentives and protections. Under the AML, qualifying whistleblowers are entitled to awards between 10 and 30 percent of the value of “monetary sanctions” above $1 million collected through an enforcement action.
To read more about the upcoming NPRMs from FinCEN, visit the Office of Information and Regulatory Affairs website here.
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