FinCEN–SBA Coordination on Beneficial Ownership Registration Act
FinCEN–SBA Coordination on Beneficial Ownership Registration Act would require the Director of the Financial Crimes Enforcement Network (FinCEN) and the Administrator of the Small Business Administration (SBA) to enter into a joint memorandum of understanding (MOU) to ensure the dissemination of “covered information” about beneficial ownership reporting. The goal is to improve outreach, understanding, and compliance with the Corporate Transparency Act (CTA) requirements for reporting companies (e.g., corporations, LLCs formed under U.S. law). The act directs outreach to reporting companies, trade associations, and SBA resource partners (such as small business development centers, women’s business centers, and veteran business outreach centers), mandates multilingual accessibility, links between agency websites, and proactive education to counter scams related to beneficial ownership reporting. It also requires periodic public updates to Congress and a publicly available MOU, with regular coordination meetings to review progress and challenges. In short, the bill seeks to formalize interagency collaboration to broaden awareness and compliance with beneficial ownership reporting, with an emphasis on small businesses and the networks that support them, while also addressing fraud and ensuring accessibility of information.
Key Points
- 1Interagency MOU: The Director of FinCEN and the SBA Administrator must sign a written memorandum of understanding within 90 days to jointly disseminate covered information and coordinate outreach activities related to beneficial ownership reporting.
- 2Targeted Dissemination and Accessibility: The plan must provide information to reporting companies, trade associations, and SBA resource partners; include multilingual accessibility (English, Spanish, and other languages determined jointly); and link SBA sites to FinCEN’s beneficial ownership information.
- 3Outreach and Education Activities: The MOU requires hosting in-person town halls and webinars, using SBA field offices and FinCEN domestic liaisons, and implementing strategies to identify and counter scams or fraudulent schemes related to beneficial ownership reporting.
- 4Public Access and Oversight: The MOU must be made publicly available within 7 days of signing; semiannual (every 6 months) coordination meetings must occur to review implementation, challenges, and strategies; and reports to Congress are due every 30 days describing actions, outreach reach, and compliance status.
- 5Reports to Congress: The Director and SBA Administrator must jointly submit monthly reports to relevant Senate and House committees detailing outreach efforts, estimated recipients of information or assistance, and the number in compliance, plus planned actions for the next period.