AWACSMortgage compliance intelligence from Flightline

Federal Register · Final rule FR Doc. 2024-23920 · Published

Update to the Public Utility Exemption Under the Beneficial Ownership Information Reporting Rule

FinCEN amends 31 CFR 1010.380(c)(2)(xvi) to add a cross-reference to 26 U.S.C. 7701(a)(33)(D), making clear that certain telecommunications providers fall within the public utility exemption from beneficial ownership reporting.

InformationalEffective Oct 18, 2024Checks passed· adjusted automaticallyRead the rule ↗ (opens in a new tab)

Loan impact

From the rule text · verified

Applies to: Entities assessing whether they are exempt public utilities under the beneficial ownership information reporting rule; no residential mortgage loans are directly affected.

Effective
Oct 18, 2024
Applicability confidence
Verified: every row above is supported by the source text

What changed

From the rule text · Section 31 CFR 1010.380(c)(2)(xvi)
RequirementPreviouslyNow
Public utility exemption cross-reference to 26 U.S.C. 7701(a)(33)(D)ClarifiedPreviously: The exemption cross-referenced only subparagraph (A) of 26 U.S.C. 7701(a)(33).The exemption cross-references subparagraph (A) or (D), clarifying coverage of telecommunications providers.

What to do

AWACS interpretation · not source language

What to review: No change is mandatory; review the clarification that the public utility exemption in 31 CFR 1010.380(c)(2)(xvi) now cross-references subparagraph (A) or (D), which makes clear that certain telecommunications providers are covered, effective October 18, 2024, and note that no residential mortgage loans are directly affected.

QC implications

  • No mandatory change here, so QC has no new test required by this record.
  • Where the lender or its entities assess the public utility exemption from beneficial ownership reporting, QC may confirm that the assessment reflects the cross-reference to subparagraph (A) or (D) of 26 U.S.C. 7701(a)(33).

Source and record

Version 1 · archived

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