BurgherGray Newsletter

The Corporate Transparency Act (the “CTA”) went into effect on January 1, 2024, and requires “reporting companies” in the United States to disclose certain types of information about their “beneficial owners” (“BOI Report(s)”) to the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”).

On February 13, 2024, the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Treasury took a decisive step toward expanding the compliance obligations of certain types of investment advisers. By withdrawing its 2015 proposal and introducing a new set of proposed rules (the “Proposed Rules”), FinCEN aims to strengthen Anti-Money Laundering/Counter-Terrorist Financing (“AML/CTF”) measures among Registered Investment Advisers (“RIAs”) and SEC Exempt Reporting Advisers (ERAs). This update signifies a broadening of the scope for AML obligations, marking the first time ERAs have been explicitly included under such regulatory requirements.

We wish to inform you about a significant regulatory development that could reshape the fintech landscape. The Consumer Financial Protection Bureau (“CFPB”) recently proposed the Personal Financial Data Rights (the “Proposed Rule”) rule with the intention of making consumers’ financial transaction data more portable, thereby causing a broader shift to a more open banking ecosystem characterized by increased competition between banking service providers.