CTA Update: Who Has Access to Beneficial Ownership Information Reports?
The Corporate Transparency Act (“CTA”) requires certain companies not otherwise exempt from the CTA (“Reporting Companies”) to submit Beneficial Ownership Information (“BOI”) reports to FinCEN.
FinCEN published a final rule in December 2023 which allows only certain categories of recipients (“Recipients”) to access BOI reports submitted by Reporting Companies (the “Access Rule”). These Recipients include:
- U.S. Department of Treasury
- U.S. federal agencies engaged in national security, intelligence, or law enforcement activity
- State, local, and Tribal law enforcement agencies
- Foreign authorities
- Financial institutions subject to customer due diligence requirements
- Federal functional regulators and other appropriate agencies
Importantly, under the Access Rule, these Recipients can only access BOI reports for an authorized purpose. For example, U.S. federal agencies engaged in national security, intelligence, or law enforcement may only access BOI reports if it is in furtherance of a civil or criminal investigation or enforcement activity. Similarly, a state law enforcement agency may only access BOI reports in furtherance of a civil or criminal investigation.
The Access Rule imposes civil or criminal penalties for unauthorized disclosures of BOI reports.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
CTA Update: Who Has Access to Beneficial Ownership Information Reports?
The Corporate Transparency Act (“CTA”) requires certain companies not otherwise exempt from the CTA (“Reporting Companies”) to submit Beneficial Ownership Information (“BOI”) reports to FinCEN.
FinCEN published a final rule in December 2023 which allows only certain categories of recipients (“Recipients”) to access BOI reports submitted by Reporting Companies (the “Access Rule”). These Recipients include:
- U.S. Department of Treasury
- U.S. federal agencies engaged in national security, intelligence, or law enforcement activity
- State, local, and Tribal law enforcement agencies
- Foreign authorities
- Financial institutions subject to customer due diligence requirements
- Federal functional regulators and other appropriate agencies
Importantly, under the Access Rule, these Recipients can only access BOI reports for an authorized purpose. For example, U.S. federal agencies engaged in national security, intelligence, or law enforcement may only access BOI reports if it is in furtherance of a civil or criminal investigation or enforcement activity. Similarly, a state law enforcement agency may only access BOI reports in furtherance of a civil or criminal investigation.
The Access Rule imposes civil or criminal penalties for unauthorized disclosures of BOI reports.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.