Washington Report

Advocacy Updates from Washington D.C.

FinCEN Issues Beneficial Ownership Information Reporting Guidance

The Financial Crimes Enforcement Network (FinCEN) published the Beneficial Ownership Information Reporting Guidance to provide small businesses with information regarding the beneficial ownership rule that will go into effect on January 1, 2024. The beneficial ownership rule will require business owners with 25 percent or more ownership in a company to provide personal identifiable information to FinCEN, which is a bureau within the U.S. Treasury Department. The purpose of this rule is to stop the formation of anonymous shell companies, and to prevent illicit crime. NAR has been supportive of the collection of beneficial ownership data in an effort to prevent bad actors from engaging in illicit activities involving real estate.

NAR will continue to provide updates regarding key anti-money laundering developments, and more information about the beneficial ownership rule.