FinCEN–SBA Coordination on Beneficial Ownership Registration Act
FinCEN–SBA Coordination on Beneficial Ownership Registration Act would require the Director of FinCEN and the Administrator of the Small Business Administration to enter into a formal memorandum of understanding (MOU) to jointly disseminate information about the beneficial ownership reporting requirements established under the Corporate Transparency Act. The goal is to improve outreach to small businesses, ensure multilingual access to guidance, and coordinate through SBA resource partners (such as small business development centers, women’s business centers, and veteran business outreach centers) to boost compliance and reduce scams related to beneficial ownership reporting. The bill also creates a structured schedule for public sharing of the MOU, regular interagency reviews, and ongoing reporting to Congress on outreach and compliance progress. In short, the act formalizes interagency coordination to educate and assist small businesses with meeting beneficial ownership reporting obligations, leveraging SBA networks and FinCEN resources, and reporting back to Congress on progress and challenges.
Key Points
- 1Mandatory interagency cooperation: Within 90 days of enactment, FinCEN and the SBA must sign a written memorandum of understanding to jointly disseminate covered information and coordinate outreach.
- 2Broad dissemination plan: The MOU requires outreach to reporting companies, trade associations, and SBA resource partners, including dissemination through SBA networks and multilingual accessibility (English, Spanish, and additional languages as determined).
- 3Communication channels and accessibility: The SBA website must link to FinCEN’s beneficial ownership webpages, and information must be accessible via both FinCEN and SBA platforms.
- 4Education and anti-fraud focus: The plan must include identifying and countering scams related to beneficial ownership reporting and educating stakeholders about these schemes.
- 5Outreach events and field presence: The Administrator (SBA) and FinCEN will host in-person town halls and webinars, using SBA field offices and FinCEN Domestic Liaisons, to educate reporting companies and related groups.
- 6Public disclosure and periodic reviews: The MOU must be made publicly available within 7 days of signing; the agencies must meet every 6 months to review coordination, compliance barriers, and strategies.
- 7Compensation limitation: Participants in required meetings cannot be compensated for attending.
- 8Ongoing congressional reporting: Beginning 30 days after the MOU and every 30 days thereafter, the agencies must jointly report to relevant Senate and House committees on outreach actions, estimated numbers of recipients, and the number of compliant reporting companies, plus planned actions for the next period.