But eliminating a government reporting requirement does not eliminate the financial system’s need to understand corporate ownership. Banks, broker-dealers and other covered financial institutions remain subject to customer due diligence obligations designed precisely to prevent criminals from hiding behind legal entities. See also: Innovation Keeps Expanding Compliance for Mid-Market FirmsThe Beneficial Ownership Database Was Meant to Solve an Information ProblemThe Corporate Transparency Act was built around a straightforward premise. The beneficial ownership information regime was intended to narrow that gap by requiring covered companies to tell FinCEN which natural persons ultimately owned or controlled them. Under the framework, beneficial ownership generally captured people owning at least 25% of an entity or exercising substantial control.