standards and procedures for
requiring reporting companies to submit information to FinCEN,
and
implementation of FinCEN s
protocols for maintaining and disclosing beneficial ownership
information.
FinCEN Requests for Comment
Definitions
The CTA defines the categories of entities required to disclose
the beneficial ownership information broadly. FinCEN seeks on
potential ambiguities, uncertainties, and coverage gaps in the
definitions.
Reporting of Beneficial
Ownership Information
As currently written in statute, a beneficial owner
is an individual who either directly or indirectly: (i) exercises substantial control over the entity; or (ii) owns or
controls not less than 25 percent of ownership interests of said
entity. FinCEN seeks comment on the scope of reporting on an
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The Situation: On January 4, 2021, the Office of the Comptroller of the Currency ( OCC ) issued an Interpretive Letter permitting national banks and federal savings associations ( Banks ) to participate in independent node verification networks ( INVN ) and to use stablecoin, a type of cryptocurrency designed to have stable value, to conduct payment and other activities permitted for banks.
The Result: The OCC Interpretive Letter relies upon longstanding regulatory and case law precedent holding that the business of banking should evolve and adapt to technological changes as they occur. The OCC concludes that validating, sorting, and recording payment transactions by serving as a node on an INVN, issuing stablecoin, and exchanging stablecoin for fiat currency such as U.S. dollars are permissible bank-payment activities when conducted consistent with applicable law and sound banking practices.