FinCEN–SBA Coordination on Beneficial Ownership Registration Act

The "FinCEN-SBA Coordination on Beneficial Ownership Registration Act" mandates a memorandum of understanding (MOU) between the Financial Crimes Enforcement Network (FinCEN) and the Small Business Administration (SBA) . This MOU aims to ensure the effective dissemination of information regarding beneficial ownership reporting requirements, as mandated by the Corporate Transparency Act, to small businesses and other reporting companies. Congress emphasizes that collecting beneficial ownership information is crucial for national security, combating illicit activities like money laundering, and protecting interstate commerce. The bill outlines specific activities for the FinCEN-SBA MOU, which must be established within 90 days of enactment and made publicly available. These include disseminating "covered information" through SBA resource partners, making materials available in multiple languages, and linking the SBA website to FinCEN's beneficial ownership pages. A key provision is the implementation of a plan to identify and counter scams related to beneficial ownership reporting, alongside educating businesses about such fraudulent schemes. Furthermore, the MOU requires FinCEN and SBA to host in-person town halls and webinars featuring FinCEN staff to explain compliance requirements, utilizing SBA field offices and FinCEN Domestic Liaisons. These events are to be advertised to reporting companies and trade associations. The agencies must also meet every six months to review coordination, address challenges in increasing compliance, and develop collaborative strategies, with joint reports submitted to Congress every 30 days detailing outreach actions and compliance rates.