Davis Polk partner Dan Stipano was quoted in MoneyLaundering.com on the Treasury Department’s beneficial ownership registry and whether it will prove to be effective in identifying money laundering. Dan explained that false data inputs could drastically reduce the registry’s value to law enforcement and the financial services industry and that currently, no one is required to verify the accuracy of the information in the registry. He also noted that it is not clear what a bank should do if it discovers the information it is collecting from a customer does not match what is in the registry.

“What I hope doesn’t happen is that banks become the de-facto quality control function for the registry, where they’re obligated to point out discrepancies or inaccuracies,” Dan said.

“For US Beneficial Ownership Database, Deepest Pitfalls May Lie Ahead,” MoneyLaundering.com (October 24, 2022) (subscription required)

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