I don't quite get it. It seems that what this does is put the burden on reporting of this information back onto banks, not that this information will not be collected. Further it is my understanding that the reporting was to identify the up to four people who had controlling interests in companies with more than 20 employees and 5 million in sales. the intention being to reduce money laundering and terrorism.
Name the four largest shareholders? This honestly does not seem like any kind of burden to me. If it is, I have way more burden reporting short vs long term capital gains or hell even renewing my passport.
With all these regulations being removed, I see no reason not to just start doing white collar crime. We’re being given permission. Who wants to launder some money?
Make big news about Ukraine, Ukraine, Ukraine but quietly shoot down the regulations that help to protect the people of USA.
How do they just decide to stop enforcing a law passed by congress?
I don't understand the deep details of this, although I have submitted the forms for the three companies I own already but perhaps it arises from the weird nature of the US. It's a country, but not really. Specifically when you form a company it is registered with a state, not the country. The state knows (or could know) who you are. But, at least without looking in NSA databases, the federal government has no idea. Unless the state tells them. Which you might expect they would, but perhaps not? So this requirement is really there so the federal government gets a synced copy of the database each state already has, but done in the most inefficient way possible.
The same weirdness shows up with identity documents (drivers' license) which again is issued by the state, but federal authorities want to get the data. Ending with the very odd situation that you can choose from two kinds of license in the state I live in: one works to get on a plane (federal administration) the other does not.
The President has been accused of money laundering and now unilaterally decides the Treasury will no longer enforce a law aimed at reducing money laundering. It’s entirely self serving and obvious.
"not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either"
So now you can hide money offshore easier? Soo cool.
This is great news, I was going to have to file for my HOA. Seems like a complete waste of time.
Are laws meaningless if they can arbitrarily suspend enforcement?
For the record https://www.fincen.gov/sites/default/files/shared/Corporate_...
It is the sense of Congress that— (1) more than 2,000,000 corporations and limited liability companies are being formed under the laws of the States each year; (2) most or all States do not require information about the beneficial owners of the corporations, limited liability companies, or other similar entities formed under the laws of the State; (3) malign actors seek to conceal their ownership of corporations, limited liability companies, or other similar entities in the United States to facilitate illicit activity, including money laundering, the financing of terrorism, proliferation financing, serious tax fraud, human and drug trafficking, counterfeiting, piracy, securities fraud, financial fraud, and acts of foreign corruption, harming the national security interests of the United States and allies of the United States; (4) money launderers and others involved in commercial activity intentionally conduct transactions through corporate structures in order to evade detection, and may layer such structures, much like Russian nesting ‘‘Matryoshka’’ dolls, across various secretive jurisdictions such that each time an investigator obtains ownership records for a domestic or foreign entity, the newly identified entity is yet another corporate entity, necessitating a repeat of the same process; (5) Federal legislation providing for the collection of beneficial ownership information for corporations, limited liability companies, or other similar entities formed under the laws of the States is needed to— (A) set a clear, Federal standard for incorporation practices; (B) protect vital Unites States national security interests; (C) protect interstate and foreign commerce; (D) better enable critical national security, intelligence, and law enforcement efforts to counter money laundering, the financing of terrorism, and other illicit activity; and (E) bring the United States into compliance with international anti-money laundering and countering the financing of terrorism standards; (6) beneficial ownership information collected under the amendments made by this title is sensitive information and will be directly available only to authorized government authorities, subject to effective safeguards and controls, to (A) facilitate important national security, intelligence, and law enforcement activities; and (B) confirm beneficial ownership information provided to financial institutions to facilitate the compliance of the financial institutions with anti-money laundering, countering the financing of terrorism, and customer due diligence requirements under applicable law; (7) consistent with applicable law, the Secretary of the Treasury shall— (A) maintain the information described in paragraph (1) in a secure, nonpublic database, using information security methods and techniques that are appropriate to protect nonclassified information systems at the highest security level; and (B) take all steps, including regular auditing, to ensure that government authorities accessing beneficial ownership information do so only for authorized purposes consistent with this title; and (8) in prescribing regulations to provide for the reporting of beneficial ownership information, the Secretary shall, to the greatest extent practicable consistent with the purposes of this title— (A) seek to minimize burdens on reporting companies associated with the collection of beneficial ownership information; (B) provide clarity to reporting companies concerning the identification of their beneficial owners; and (C) collect information in a form and manner that is reasonably designed to generate a database that is highly useful to national security, intelligence, and law enforcement agencies and Federal functional regulators.
Today is a massive victory for criminals.
Incredible move for entrepreneurship in the USA. This created just another stupid piece of paper to file that we no longer have to - which was requested on shaky legal grounds and punished by $5000/day fines.
This is information is already on file in tons of places, so the requirement is asinine - I personally never filed mine since it was caught up in the court but I'll gladly take this win.
Maybe we can get him to get rid of FATCA reporting too? lmao
I can understand trying to cut red tape, but this law was intended to fight the money laundering schemes the cartels used to fund their operations. The administration is threatening war with other countries under the guise of illegal drugs, but will roll over if it means they can't cheat on taxes anymore.
It's not like they are rolling back the incredibly expensive and privacy invading "Know-Your-Customer" rules across banking as a whole.