SIIA Supports Ownership Clarity Act to address Beneficial Ownership Information Challenges

The following statement can be attributed to Chris Mohr, President, the Software & Information Industry Association (SIIA).

SIIA supports the Ownership Clarity Act which would provide critical corrections to address unintended consequences following FinCEN's issuance of a rule restricting the disclosure of beneficial ownership information (BOI) (the "BOI Rule"). The bipartisan and bicameral Act addresses the challenges associated with FinCEN effectively restricting the disclosure of BOI, including altering the circumstances under which BOI reported to FinCEN - such as implicit and explicit sanctions evasion data, watchlist data, and information on individuals connected to trafficking and fentanyl-related crime - may be disclosed to authorized recipients, including third-party service providers (TPSPs).

The amendment would grant licensed TPSPs ongoing access to BOI in order to better serve the regional and community banks that rely on them. These providers could then aggregate the BOI with relevant data to give financial institutions a comprehensive view of potential bad actors, enabling them to make sound risk management decisions. This will make it easier for regional and community banks to meet their AML/CFT compliance obligations around human trafficking, child trafficking, sanctions evasion, and fentanyl.