Department of the Treasury January 25, 2022 – Federal Register Recent Federal Regulation Documents

This document contains proposed regulations regarding the treatment of domestic partnerships and S corporations that own stock of passive foreign investment companies (``PFICs'') and their domestic partners and shareholders (the ``proposed regulations''). The proposed regulations also provide guidance regarding the determination of the controlling domestic shareholders of foreign corporations, the owner of a controlled foreign corporation (``CFC'') or qualified electing fund (``QEF'') that makes an election under section 1411, the treatment of S corporations with accumulated earnings and profits under subpart F of part III of subchapter N of chapter 1 of the Internal Revenue Code (``subpart F'' of the ``Code''), and the determination and inclusion of related person insurance income (``RPII'') under section 953(c). The proposed regulations affect United States persons that own, directly or indirectly, stock in certain foreign corporations.

FinCEN is issuing this notice of proposed rulemaking to seek public comment on the proposed establishment of a limited-duration pilot program, subject to conditions set by FinCEN, to permit a financial institution with a suspicious activity report (SAR) reporting obligation to share SARs and information related to SARs with the institution's foreign branches, subsidiaries, and affiliates for the purpose of combating illicit finance risk, in accordance with Section 6212(a) of the Anti-Money Laundering Act of 2020 (AML Act).