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McHenry Raises Concerns with FinCEN’s Proposal Regarding Access to Beneficial Ownership Information

Washington, Dec 15 -

Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement in response to the Financial Crimes Enforcement Network’s (FinCEN) release of a Notice of Proposed Rulemaking regarding access to beneficial ownership information.

“Today’s Notice of Proposed Rulemaking issued by FinCEN does not prioritize Americans’ financial privacy in the way Congress intended,” said Chairman-elect McHenry. “FinCEN must include the appropriate protections to prevent unauthorized access and use of the sensitive information collected under this new regime. Until we see a real effort to protect this confidential information, Republicans remain concerned about FinCEN’s commitment to privacy and civil liberties. Protecting Americans’ financial privacy will be a top priority of Committee Republicans’ oversight and legislative initiatives next Congress.”

Background:

On December 3, 2020, Republican Leader McHenry issued a statement after the bipartisan beneficial ownership conference agreement included in the Fiscal Year 2021 National Defense Authorization Act (NDAA), which provides the strongest protections in the history of small businesses’ beneficial ownership data collection, passed the House.

On April 7, 2021, Republican Leaders McHenry and Luetkemeyer sent a letter to Treasury Secretary Janet Yellen urging FinCEN to adhere to Congressional intent when developing and implementing the new beneficial ownership reporting regime.

On March 2, 2022, Republican Leaders McHenry and Luetkemeyer sent a comment letter to Treasury Secretary Yellen and acting FinCEN Director Himamauli Das highlighting numerous concerns with the Treasury Department’s Notice of Proposed Rulemaking (NPRM) on Beneficial Ownership Information Reporting Requirements, including that it’s too complex, too broad, and significantly deviates from Congressional intent. The lawmakers also demanded the rulemaking’s impact on small businesses be minimal.

At an April 28, 2022, hearing with acting FinCEN Director Das, Republican Leader McHenry demanded that small businesses be protected from overly burdensome beneficial ownership regulations and called for transparency regarding FinCEN’s collection of Americans’ financial data.

On September 29, 2022, Republican Leader McHenry and Rep. Blaine Luetkemeyer (MO-03) issued a statement slamming the Financial Crimes Enforcement Network’s (FinCEN) final rule to implement the new beneficial ownership reporting regime.

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