Business Ownership Reporting Requirements

[UrHuckleberry]

https://www.fincen.gov/news/news-releases/fincen-permanently-ends-beneficial-ownership-reporting-requirements-millions

Asked this in another thread. But thought it warrants its own thread. Using the actual announcement from the administration not anyone else’s reporting on it to be as fair as possible.

I need someone on the right to explain why this pretty simple reporting requirement was such a burden that we should get rid of it AND get rid of the current database.

Was a requirement to try to prevent money laundering, hostile nations owning things, and made it harder for criminal networks. The announcement calls out that it’s only for US Citizens that the requirement has been dropped, but if everyone isn’t reporting, are we just trusting that foreign adversaries are self reporting?

This feels so plainly beneficial to criminals, I just don’t get it. Am I missing something?

 

[fatpiggy]

https://www.fincen.gov/news/news-releases/fincen-permanently-ends-beneficial-ownership-reporting-requirements-millions

Asked this in another thread. But thought it warrants its own thread. Using the actual announcement from the administration not anyone else’s reporting on it to be as fair as possible.

I need someone on the right to explain why this pretty simple reporting requirement was such a burden that we should get rid of it AND get rid of the current database.

Was a requirement to try to prevent money laundering, hostile nations owning things, and made it harder for criminal networks. The announcement calls out that it’s only for US Citizens that the requirement has been dropped, but if everyone isn’t reporting, are we just trusting that foreign adversaries are self reporting?

This feels so plainly beneficial to criminals, I just don’t get it. Am I missing something?

Yes. You are missing that it was almost cancelled under Biden.

It was a dumbass paperwork report. My lawyer told me I almost had to fill it out but they were about to change it so don’t bother.

It was just more stupid paperwork that generated fees for a lawyer

 

[UrHuckleberry]

Yes. You are missing that it was almost cancelled under Biden.

It was a dumbass paperwork report. My lawyer told me I almost had to fill it out but they were about to change it so don’t bother.

It was just more stupid paperwork that generated fees for a lawyer

That is news to me, but is also why I asked. Do you have a source for the Biden part? Just seems like we should have something like it, but maybe it was so easy to get around it became pointless?

 

[fatpiggy]

Let’s remember, the government already knows everything.

Every keystroke on the internet is recorded forever. Literally I mean that. And then you have flock cameras on every corner. We have KYC know your customer at FINRA

The government knows who owns that business. No need for more unnecessary burdens on small businesses.

It was another superfluous regulation put on the backs of small business owners.

 

[fatpiggy]

That is news to me, but is also why I asked. Do you have a source for the Biden part? Just seems like we should have something like it, but maybe it was so easy to get around it became pointless?

My source is just what my lawyer told me when he told me about the requirement a couple years ago

 

[kidmike41]

https://www.fincen.gov/news/news-releases/fincen-permanently-ends-beneficial-ownership-reporting-requirements-millions

Asked this in another thread. But thought it warrants its own thread. Using the actual announcement from the administration not anyone else’s reporting on it to be as fair as possible.

I need someone on the right to explain why this pretty simple reporting requirement was such a burden that we should get rid of it AND get rid of the current database.

Was a requirement to try to prevent money laundering, hostile nations owning things, and made it harder for criminal networks. The announcement calls out that it’s only for US Citizens that the requirement has been dropped, but if everyone isn’t reporting, are we just trusting that foreign adversaries are self reporting?

This feels so plainly beneficial to criminals, I just don’t get it. Am I missing something?

It is a huge burden when operating multiple operating entities. When an owner/investor comes in and out the business it needs to be reported. We have been told that a lawyer should be used to report this versus us just doing it. So now we get to spend unnecessary dollars on top of the hassle.

 

[MTTiger19]

Looks like an elimination of redundancy on its face. I have no dog in the fight and don’t care but that’s what it appears to be attempting to do. Even says:
Under the final rule, foreign entities that are reporting companies will still be required to report beneficial ownership information for foreign individuals.

 

[fatpiggy]

It is a huge burden when operating multiple operating entities. When an owner/investor comes in and out the business it needs to be reported. We have been told that a lawyer should be used to report this versus us just doing it. So now we get to spend unnecessary dollars on top of the hassle.

Agreed. It was just something else to keep up with and there is already so much. Another $500 to the lawyer for 10 mins of work for him.

The government has all that information anyway, imo.

 

[UrHuckleberry]

Looks like an elimination of redundancy on its face. I have no dog in the fight and don’t care but that’s what it appears to be attempting to do. Even says:
Under the final rule, foreign entities that are reporting companies will still be required to report beneficial ownership information for foreign individuals.

Yeah, I had called that last part out, but if they aren't required to report, not sure how they would know. Honor code?

 

[UrHuckleberry]

Agreed. It was just something else to keep up with and there is already so much. Another $500 to the lawyer for 10 mins of work for him.

The government has all that information anyway, imo.

Part of why I asked the question, but how would they have all the information?

 

[fatpiggy]

Yeah, I had called that last part out, but if they aren't required to report, not sure how they would know. Honor code?

In my business alone I am registered with FINRA, a government organization. My accounts are subject to KYC rules (government rules). I report and pay taxes (government). They have me on flock camera every.single.day (government). And they have everything I have ever done online recorded.

And we think they don’t know who owns my business? They need ANOTHER piece of paper for a law abiding citizen to fill out, and get fined if you don’t do it properly?

They already have the information imo.

This is what small business owners mean when there are too many regulations. Let us work instead of burying us under fees and paperwork.

 

[RockyMtNole]

The bigger question is whether the proposal to do away with quarterly reporting goes anywhere.

 

[fatpiggy]

The bigger question is whether the proposal to do away with quarterly reporting goes anywhere.

I’d be fine with semi-annual reporting. I get the argument.

 

[RockyMtNole]

I’d be fine with semi-annual reporting. I get the argument.

I see both sides.

I think a lot of the opposition is from firms in the quarterly reporting ecosystem who stand to lose a lot of revenue if companies go to twice yearly.

 

[UrHuckleberry]

In my business alone I am registered with FINRA, a government organization. My accounts are subject to KYC rules (government rules). I report and pay taxes (government). They have me on flock camera every.single.day (government). And they have everything I have ever done online recorded.

And we think they don’t know who owns my business? They need ANOTHER piece of paper for a law abiding citizen to fill out, and get fined if you don’t do it properly?

They already have the information imo.

This is what small business owners mean when there are too many regulations. Let us work instead of burying us under fees and paperwork.

I get that, and if there are regulations that overlap and either already serve the same purpose or could become a dual purpose, then I'm all good. But a lot of regulations were created for a reason, and when removed, you suddenly remember the reason (think we're seeing that with all the food contamination for example right now).

 

[fatpiggy]

I get that, and if there are regulations that overlap and either already serve the same purpose or could become a dual purpose, then I'm all good. But a lot of regulations were created for a reason, and when removed, you suddenly remember the reason (think we're seeing that with all the food contamination for example right now).

Amen. I don’t disagree and am not arguing for no regulation. But at some point there is too much, and I file this under that category. As a small business owner, it starts to feel like death from a thousand cuts.

 

[UrHuckleberry]

Amen. I don’t disagree and am not arguing for no regulation. But at some point there is too much, and I file this under that category. As a small business owner, it starts to feel like death from a thousand cuts.

Got you. Hope you (and others that I don't often agree with) understand that often I ask these questions because I am aware that there is a lot I don't know. So sometimes when something on the surface stinks, it's because it does stink. But sometimes, it is just because I don't understand the why behind it. So like to ask and make sure I feel I know which it is.

In general, as long as these types of decisions are made deliberately and after careful review, I am all aboard. Still not all aboard the Mamdani train for everything, but he has cut some regulation in NYC recently, again for small businesses that were overly restrictive.

Like the idea of regular reviews of overall regulations, looking for overlap, whether its actually solving its intended purpose, etc.

 

[baltimorened]

Yeah, I had called that last part out, but if they aren't required to report, not sure how they would know. Honor code?

Aren't we somewhat depending on the honor code in voting. With no ID required we're depending on the voter to tell us who he is...

 

[UrHuckleberry]

Aren't we somewhat depending on the honor code in voting. With no ID required we're depending on the voter to tell us who he is...

Holy subject change batman

 

[Meatball Sandwich]

This is great in theory, horrible in practice. The nature of banking data prevents a meaningful application of the regulation