Davis Polk partner Dan Stipano was quoted in MoneyLaundering.com on a potential loophole in the proposed reporting form for FinCEN’s new beneficial ownership database. The proposed form may allow companies to answer “unknown” when reporting to the bureau who owns and controls them. Dan explained that “while there are civil and criminal penalties available for entities that violate the rule, as a practical matter, it would be very difficult for FinCEN to determine that a reporting company used the ‘unknown’ response in bad faith.”

“Reporting ‘Loophole’ Risks Undermining FinCEN’s New Database, Analysts Warn,” MoneyLaundering.com (January 20, 2023) (subscription required)

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