US Beneficial Ownership Information Reporting Rule and Implications for Switzerland and EU
On 18 September 2023, FinCEN introduced a Small Entity Compliance Guide to assist the small business community in adhering to the beneficial ownership information (BOI) reporting rule. From 2024, numerous entities either established in or registered to operate in the US will be mandated to disclose information about their beneficial owners to FinCEN. This guide embodies FinCEN's dedication to streamlining the compliance process, particularly for smaller businesses, and signifies a major step towards the enactment of the Corporate Transparency Act.
Key Highlights from the Guide:
- The guide elucidates each provision of the BOI reporting rule in a user-friendly manner.
- It addresses essential questions and offers a range of interactive tools, including checklists and infographics, to facilitate businesses in their compliance endeavors.
- The rule will be activated on 1 January 2024, enabling companies to initiate their beneficial ownership reporting to FinCEN from this date. FinCEN has also signaled that more comprehensive guidance on the submission process will be unveiled shortly.
Implications for Switzerland: Considering the recent consultation by the Swiss Federal Council on 30 August 2023 to fortify the anti-money laundering (AML) framework, which includes the introduction of a Federal Transparency register for Swiss legal entities, the US initiative amplifies the global shift towards increased transparency. Swiss firms with ties or operations in the US should gear up to align with both domestic and US regulations on beneficial ownership disclosure.
Implications for the EU: The EU has been a vanguard in beneficial ownership transparency, as demonstrated by the 5th Anti-Money Laundering Directive (5AMLD) that obliges EU member states to maintain centralized registers of beneficial ownership details. The US action aligns with the EU's approach, and EU companies with a presence in the US should ensure they are compliant with the stipulations of both jurisdictions.
Closing Thoughts: The global emphasis on beneficial ownership transparency is palpable, with countries like Switzerland and the US taking commendable initiatives in this arena. As your trustworthy partner in the implementation of Risk and Compliance requirements, Peak Suisse emphasizes the importance for businesses, especially those under the purview of FINMA, to stay updated and proactively adapt to these changes. The convergence of regulations across major financial hubs such as Switzerland, the EU, and the US presents a mix of challenges and opportunities. Embracing technological innovation will be pivotal in adeptly navigating these requirements, minimizing manual tasks, and eliminating human errors.
For more insights or assistance on compliance-related matters, our dedicated team at Peak Suisse is here to help.
Stay informed. Stay compliant. Trust in Peak Suisse.
For the full guide by FinCEN, please access here.
