Enhancing Transparency and Control: US Introduces Foreign Beneficiary Registry and Form BE-12

Starting from January 1, 2023, the United States has implemented a foreign beneficiary registry. This significant legislative change was initiated as part of the G-20’s efforts to ensure transparency in beneficiary ownership, with the US being one of the latest countries to adopt this measure.

The registry will be maintained by the Bureau of Economic Analysis and will provide detailed information about companies in the United States that have foreign shareholders-owners. It will assist in analyzing and tracking foreign direct investments in the country.

By June 30 of the current year, all US companies with foreign shareholders-owners are required to submit a completed BE-12 form. The BE-12 form serves as a tool for collecting information on foreign investments in the US economy, encompassing data on ownership structures and financial indicators of these companies.

The implementation of this registry and the mandatory submission of the BE-12 form hold great significance for economic analysis and understanding the impact of foreign investments on the American economy. It will enhance the monitoring and analysis of capital flows, as well as aid in developing more effective policies related to attracting foreign investments and regulating international economic activities.

This is a crucial step towards strengthening transparency and control over foreign investments in the United States. The registry and the BE-12 form will enable the government and economic analysts to obtain more accurate and comprehensive data on external investments, ultimately facilitating precise analysis and the development of strategies for the country’s economic growth.

The Bureau of Economic Analysis urges all companies falling under the requirements to actively cooperate and provide the necessary information within the stipulated timelines. This will contribute to achieving more precise and complete data on foreign investments, fostering improved monitoring and analysis capabilities. It will also support the formulation of well-informed policies regarding the attractiveness of foreign investments and the regulation of international economic activities.

The introduction of the registry and the BE-12 form represents a significant milestone in enhancing transparency and effectiveness in tracking foreign investments in the United States. It demonstrates the commitment of the US to comply with international reporting and transparency standards in the realm of economics.