ABA Comment Letter on Revised FinCEN BOIR Form under the Paperwork Reduction Act

Dear Director Young:

The American Bankers Association (ABA) appreciates the opportunity to comment on two Paperwork Reduction Act (PRA) requests filed by Treasury's Financial Crimes Enforcement Network (FinCEN), which seek approval by the Office of Management of Budget of 1) the Beneficial Ownership Information Reports ; and 2) and the Individual FinCEN Identifier Application.

I. Summary of Comment

ABA supports FinCEN's ongoing work to establish a registry of beneficial ownership information that is highly useful to law enforcement, banks, and other stakeholders. On March 20, 2023, ABA commented on FinCEN's initial PRA request , criticizing FinCEN's proposal to permit reporting companies to respond "unknown" if certain information about a beneficial owner or company applicant is either unknown or unavailable. We reiterated our support for the aims of the Corporate Transparency Act (CTA) and FinCEN's creation of a highly useful database of beneficial ownership information. However, we noted the inclusion of an "unknown checkbox" on the appendix form permitted Reporting Companies to avoid reporting CTA-mandated information to FinCEN. That "unknown checkbox" option substantially reduces, if not eliminates, the practical utility and public benefit of the beneficial ownership information database. That database is intended to help prevent malign actors from concealing their ownership of legal entities and involvement in corporate structures in order to evade detection.

ABA commends FinCEN for responding to our and other commenters' concerns about the use of "unknown checkboxes" on the earlier version of the beneficial ownership reporting form and eliminating them.  FinCEN now proposes that for initial implementation purposes, beneficial ownership reporting forms must be complete before submission. We support this approach.

However, ABA remains concerned about FinCEN's statement that it will consider reverting to an "alternative implementation" that shares the same drawbacks as the unknown checkbox approach shortly after initial implementation. It is clear FinCEN is seriously contemplating this approach, as the beneficial ownership reporting form (or BOIR Form) for which it seeks OMB approval would facilitate it. It is very important to the nation's banks and their customers —many of whom are among the over 32 million small businesses who will face new reporting obligations to FinCEN starting January 1, 2024 —that these proposed forms contain highly useful information are clear and easy to use. Therefore, we urge FinCEN to reconsider those portions of the BOIR Form, and we urge OMB only to approve a BOIR Form that requires complete and compliant filing. 

Instead of allowing Reporting Companies to file incomplete and non-compliant BOIR Forms, ABA recommends FinCEN allow Reporting Companies to save their incomplete work and return to it later (including after contacting FinCEN's Contact Center  for help), especially as FinCEN estimates the initial reporting will take between 90 minutes and nearly 12 hours. ABA also recommends that FinCEN provide a receipt upon filing so Reporting Companies have documentation of their submission of a completed BOIR Form to FinCEN.

In addition, because the FinCEN Identifier is a critical unique identifying number, we request FinCEN revise, and OMB approve, a modified Individual FinCEN Identifier Application form to make clear which type of address needs to be reported for the individuals who create or register new businesses with reporting requirements, and harmonize it with the BOIR Form.

ABA also urges OMB to approve a paper version of both forms to allow paper filing for populations for whom electronic filing will present a burden.

Finally, we renew our call for FinCEN to verify reported beneficial ownership information, without which this information collection cannot be useful.

Download the comment letter to read the full text.