Davis Polk partner Dan Stipano shared his thoughts on FinCEN’s proposed beneficial ownership form with MoneyLaundering.com. Companies will begin using the form next year to report the personal information of anyone who owns at least 25 percent of their shares or controls their day-to-day operations to FinCEN. However, in its current state, the proposed form would allow companies the option of answering “unknown” or “unable to identify” in response to most of the form’s questions about their owners.

“The ability to provide an ‘unknown’ or ‘unable to identify’ response is an open invitation to evade the requirements,” Dan said. “It could also compromise the data in the registry and diminish its usefulness.”

“US Lawmakers Demand Removal of ‘Escape Hatch’ from Beneficial Ownership Form,” MoneyLaundering.com (April 4, 2023) (subscription required)

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