Author: Jeremy Clifton, CRCM, CAMS
The U.S. Treasury Department and Financial Crimes Enforcement Network (FinCEN) have made significant changes to the federal beneficial ownership framework. For banks and other financial institutions, however, one important point can easily get lost in the headlines:
The elimination of beneficial ownership reporting requirements for most U.S. companies under the Corporate Transparency Act does not eliminate a bank or credit unions Customer Due Diligence (CDD) beneficial ownership obligations.
On August 11, 2026, Treasury announced that FinCEN had finalized a rule permanently removing the requirement for U.S. companies and U.S. persons to report beneficial ownership information to FinCEN under the Corporate Transparency Act (CTA). The rule also provides for the deletion of certain previously reported information concerning U.S. persons from the FinCEN beneficial ownership information database. Foreign entities that remain subject to the CTA reporting requirements will continue to have reporting obligations relative to foreign individuals.
Banks and credit unions remain subject to the separate beneficial ownership requirements under the Bank Secrecy Act's CDD Rule. FinCEN's CDD framework requires covered financial institutions to identify and verify beneficial owners of applicable legal entity customers.
The most important takeaway for banks is that CTA beneficial ownership reporting and CDD beneficial ownership collection are separate regulatory regimes. The CTA primarily addresses what certain companies must report to FinCEN. The CDD Rule addresses what a covered financial institution must obtain and maintain about its customers as part of its BSA/AML program.
Consequently, a business owner would generally be incorrect telling a bank:
"I don't have to file a BOI report with FinCEN anymore, so I don't have to provide beneficial ownership information to the bank"
The bank's obligation arises from the BSA/AML CDD requirements not from whether the customer's business has a CTA filing obligation.
FinCEN’s Press Release
The U.S. Treasury Department and Financial Crimes Enforcement Network (FinCEN) have made significant changes to the federal beneficial ownership framework. For banks and other financial institutions, however, one important point can easily get lost in the headlines:
The elimination of beneficial ownership reporting requirements for most U.S. companies under the Corporate Transparency Act does not eliminate a bank or credit unions Customer Due Diligence (CDD) beneficial ownership obligations.
On August 11, 2026, Treasury announced that FinCEN had finalized a rule permanently removing the requirement for U.S. companies and U.S. persons to report beneficial ownership information to FinCEN under the Corporate Transparency Act (CTA). The rule also provides for the deletion of certain previously reported information concerning U.S. persons from the FinCEN beneficial ownership information database. Foreign entities that remain subject to the CTA reporting requirements will continue to have reporting obligations relative to foreign individuals.
Banks and credit unions remain subject to the separate beneficial ownership requirements under the Bank Secrecy Act's CDD Rule. FinCEN's CDD framework requires covered financial institutions to identify and verify beneficial owners of applicable legal entity customers.
The most important takeaway for banks is that CTA beneficial ownership reporting and CDD beneficial ownership collection are separate regulatory regimes. The CTA primarily addresses what certain companies must report to FinCEN. The CDD Rule addresses what a covered financial institution must obtain and maintain about its customers as part of its BSA/AML program.
Consequently, a business owner would generally be incorrect telling a bank:
"I don't have to file a BOI report with FinCEN anymore, so I don't have to provide beneficial ownership information to the bank"
The bank's obligation arises from the BSA/AML CDD requirements not from whether the customer's business has a CTA filing obligation.
FinCEN’s Press Release
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