NEWS: FATF upgrades US to ‘largely compliant’ on beneficial ownership; move welcomed by Yellen

By AML Intelligence Correspondent

THE United States has been upgraded to “largely compliant” with FATF’s Recommendation 24 on beneficial ownership transparency for legal persons, it was announced today.

FATF published its updated rating in the Seventh Enhanced Follow-Up Report on the United States, which was a win for the Treasury’s efforts to increase beneficial ownership transparency and address key vulnerabilities.

“The United States’ upgraded rating is a result of nearly a decade of hard work by the Treasury Department, along with our interagency partners, to stop the flow of dirty money through anonymous companies,” Secretary of the Treasury Janet L. Yellen said.

“As the world’s largest economy, we have a unique responsibility to safeguard our financial system from criminal exploitation. We’re fully committed to strengthening the implementation of the FATF’s global standards as we work to advance transparency and fairness across the U.S. financial system.”

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The Report details the United States’ progress in addressing deficiencies in its AML/CFT regime specific to Recommendation 24, including the ongoing implementation of the Corporate Transparency Act, the bipartisan law that requires many companies doing business in the United States to report information to Treasury’s Financial Crimes Enforcement Network (FinCEN) about who ultimately owns or controls them.

This, among other Treasury initiatives, aims to prevent the misuse of anonymous companies and other corporate structures by criminal, corrupt, and illicit actors.

Treasury also made significant progress in implementing the Corporate Transparency Act and is engaged in a robust outreach and education campaign to educate small businesses about the reporting requirements.

Reporting companies that existed before 2024 have until January 1, 2025, to report their beneficial ownership information to FinCEN. Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.

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