Rep. Roger Williams Questions FinCEN Director on Small Business Data Privacy

Beneficial Ownership Information (BOI) Data Deletion

• 🎯 Rep. Roger Williams questioned FinCEN Director Andrea Gacki about the privacy and security risks of collected data on domestic small business owners.
• 💡 Williams expressed concern that FinCEN holding onto data, even after an interim final rule shifted reporting obligations to foreign companies, creates unnecessary risks.
• ✅ Director Gacki committed to reviewing comments on the interim final rule and intends to delete any information filed that is no longer required once the rule is finalized.

Residential Real Estate Transfer Rule Concerns

• 🏠 A new rule requiring businesses involved in real estate closings to collect and report BOI is estimated to result in over 4 million hours of compliance work and $630 million in costs.
• 📈 Williams argued that these compliance costs will inevitably raise the price of purchasing a home, hindering the American dream of ownership.
• ⚖️ He questioned if FinCEN is considering delaying the rule to rescope it and reduce the regulatory burden on small businesses.

Justification for Real Estate Rule

• 🔍 Director Gacki defended the residential real estate rule, stating it continues a temporary measure that has been incredibly beneficial to law enforcement in tracking shell companies.
• 📊 She believes the benefits to Americans in gaining this information justify the expense and that preventing undetected shell company purchases can prevent skewing home prices.
• 🗓️ FinCEN is planning for the rule to come into effect in December.

Education and Preparation for Title Companies

• ❓ Williams raised concerns that small businesses, like title companies, may be unaware of the new residential real estate rule and unfairly punished, similar to past BOI reporting requirements.
• 🤝 Director Gacki stated that FinCEN has been working with title companies on education and will explore methods to give them additional time if needed for responsible implementation.