Tag Archives: finance

Don’t Know Your Business and Corporate Transparency Act Limited Enforcement (Oh BOI Again)

AuthenticID shared the following:

“In March, the U.S. Treasury Department announced it would no longer enforce the Corporate Transparency Act, the anti-money-laundering law that requires millions of businesses to disclose the identity of their real beneficial owners.”

Not entirely accurate as we will see, but the details are gated. But not at JD Supra:

“On March 26, 2025, FinCEN issued an interim final rule and request for comments, removing the requirement under the Corporate Transparency Act (CTA) for both U.S. companies and U.S. persons to report beneficial ownership information to FinCEN. The rule is effective March 26, 2025. Thus, subject to additional rule changes, U.S. companies and U.S. individuals no longer have to file an initial Beneficial Ownership Information Report (BOIR) or otherwise update or correct a previously filed BOIR.”

As the interim rule itself clarifies, foreign companies still have to report.

“On March 2, 2025, Treasury announced the suspension of enforcement of the CTA against U.S. citizens, domestic reporting companies, and their beneficial owners, and Treasury further announced its intent to engage in a rulemaking to narrow the Reporting Rule to foreign reporting companies only.”

The interim rule itself addresses the convoluted history (one, two, three) of FinCEN’s attempts to enforce anti-money laundering (AML) laws as court challenges persist.

I will let you judge whether this is welcome relief from bureaucracy for American companies, or a huge FinCEN loophole that facilitates AML financial identity evasion by simply letting companies represent themselves as domestic, allowing them to launder as much money as they please for terrorists, drug dealers, and others.

Not that I have an opinion on that.

(Business terrorist image Imagen 3/Google Gemini)

Bredemarket’s Three (So Far) Industry Pillar Pages

Since I started creating (sort of) pillar pages in April 2022, I’ve built more, including three devoted to particular industries.

My “Banking Changes” Post Needs an Update

Back in July 2023, I wrote a post about financial remote onboarding which included a section entitled “Three changes in banking over the last fifty years.” The first change I addressed was locational change.

The first crack in the whole idea of “going to the bank” was the ability to bank without entering the door of the bank…and being able to bank on Sunday at midnight if you felt like it. Yes, I’m talking about Automated Teller Machines (ATMs), where the “teller,” instead of being a person, was a bunch of metal and a TV screen.

But when I was recently reading a Bluesky post from mclevin that stated (correctly) that the decline in tellers didn’t start with artificial intelligence, but automated teller machines, it occurred to me that even the once-revolutionary ATM is itself outdated in financial terms.

Think about it.

What are the two most important functions of an ATM?

  • To deposit paper checks.
  • To obtain physical cash.

I think you see where this is going.

While the ATM still fulfills these functions today, how often do we receive paper checks? And even if we do, why go to a distant ATM to deposit the check when you can often perform the same function using your mobile phone?

And how often do we use cash to pay for things? Often we use a card…or a mobile phone.

Why No BOI?

(Business terrorist image Imagen 3/Google Gemini)

I asked my good buddy Google Gemini to describe the court arguments against FinCEN beneficial ownership reporting (which as of this hour is on a court-mandated hold pending a possible Supreme Court stay). Two of the items identified by Gemini are Bill of Rights related.

“Some argue the reporting requirements force businesses to disclose information about their owners, which they consider a form of compelled speech. The First Amendment protects freedom of expression, and this argument suggests the government is overstepping its bounds.”

“Critics argue that the collection of beneficial ownership information constitutes a search under the Fourth Amendment. They contend that this collection is overly broad and lacks sufficient justification to meet the constitutional standard of reasonableness.”

Human sources, including Engage Wealth Advisors, mention these same concerns.

So the big boys are still subject to KYC, KYB, and AML regulations, while the little boys (sole proprietors) aren’t. The ones in the middle who would have been subject to the Corporate Transparency Act remain in a state of limbo.

Of course, if an anonymous entity claimed that BOI opponents are Putin lovers who want to hide terrorist activities, those same opponents would want to know who is saying that about them. What’s good for me isn’t good for thee…

Oh BOI Again, Subject to Change

On December 23, 2024, we learned that Beneficial Ownership Information (BOI) reporting WOULD be required, albeit later than originally planned.

The next day, December 24, I wrote a Bredemarket blog post about this.

Two days later, December 26, my December 24 blog post was already outdated. 

“On December 26, 2024, a different panel from the Fifth Circuit issued an order that vacated the court’s prior December 23 order granting a stay of the preliminary injunction. As a result, the injunction issued in Texas Top Cop Shop remains in effect nationwide and reporting companies are currently not required to file beneficial ownership information with FinCEN.”

The notice above was published on January 4.

Check back on January 6.

Know Your…Everyone

It all started with “Know Your Customer,” a shorthand phrase used by financial institutions and related entities who need to know who their customers are.

But then various governments, industries, and entities got into the act with their own variants, such as “Know Your Business.”

I was curious about how many of these “know your” variants I’ve discussed in the Bredemarket blog. Here’s what I found:

I’m sure I’ll come up with some others.

Oh BOI

Beneficial Ownership Information alert. From Proskauer:

“On December 23, 2024, the Fifth Circuit of the United States Court of Appeals (the “Fifth Circuit”) issued an order that has the effect of reinstituting the deadlines under the Corporate Transparency Act (the (“CTA”)….

“The CTA requires a range of entities, primarily smaller, otherwise unregulated companies, to file a report with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) identifying the entities’ beneficial owners—the persons who ultimately own or control the company—and provide similar identifying information about the persons who formed the entity.

“FinCEN has recognized that the timing of the order lifting the injunction may be particularly burdensome and has extended the reporting deadlines.  Accordingly, reporting companies created prior to January 1, 2024, that are not eligible for an exemption, are required to file beneficial ownership reports by January 13, 2025 (and not January 1, 2025).”

Financial Fraud by Kids? No, by Impersonators

If you look at the evidence, it may appear that financial fraud is being committed by kids. But that’s not accurate; it’s being committed by fraudsters who are impersonating kids, according to the National News.

“”Fraudsters are targeting children’s identities because they can exploit the information for an extended period,” said Rob Woods, director of fraud and identity for LexisNexis Risk Solutions….

“With criminals well aware of the likelihood of the child’s identity theft going undetected, Mr Woods said LexisNexis is seeing criminals opening bank accounts, applying for loans and even committing other financial crimes with the fake identity.”

So perhaps you had better check Junior’s credit rating.

Saving Money When Filling Prescriptions: Not You, The Companies

Healthcare is complicated. When most of us receive prescriptions from our doctor, either the doctor gives us a physical slip of paper with the prescription, or the doctor electronically sends the prescription to your pharmacy of choice. After that, you deal with the pharmacy yourself. Normally it goes smoothly. Sometimes it doesn’t.

  • Maybe the patient’s insurance company doesn’t cover the prescription, or charges an exorbitant price for it.
  • Maybe the patient never picks the prescription up. (The industry term is “adherence.”)
Ritalin. CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=2805908.

There are a lot of companies that want to help drug companies, physicians, and others make this process more seamless and less costly (for example, by maximizing gross-to-net, or GTN).

How many companies want to help? One afternoon I estimated that 30 companies are in this market. Based upon past experience in the identity verification industry (namely, all those battlecards my team created), this means that there are probably really more than 100 companies in the market.

While the companies obviously have to please the patients who need the prescriptions, they’re not critically important because the patients (usually) don’t pay the companies for the improved service.

So the companies have to sell others on their services.

Alto Technologies: “Alto Technologies’ configurable platform integrates hub and dispensing capabilities into an automated and seamless single service provider solution that improves patient experience and reduces administrative burden.”

Medisafe: “Patient support begins with onboarding and continues throughout treatment, with intuitive guidance throughout every encounter. From initial prescription to benefits investigation and authorization to shipment tracking, patients receive streamlined support with educational information and real-time updates.”

Phil: “Streamline medication access for your patients and providers. Our digital hub platform empowers retail and specialty-lite manufacturers with an alternative channel solution…”

Truepill: “Whether you’re an established brand looking to reach your patients directly, or an emerging company planning your go-to-market strategy, Virtual Pharmacy is the digital pharmacy solution built to scale.”

Of course, there are many more.

And they all need to tell their stories…