What’s new: Beginning Jan. 1, 2024, new Federal regulations go into effect that will require many corporations, limited liability companies, and other U.S. and foreign entities created in or registered to do business in the United States to report information about their beneficial owners—the persons who ultimately own or control the company—to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
These new reporting requirements were created in 2021 under the Federal Corporate Transparency Act to strengthen the integrity of the U.S. financial system by making it harder for illicit actors to use anonymous shell companies to launder their money or hide assets.
Important deadlines: Companies formed or registered before January 1, 2024, will have until Jan. 1, 2025, to file their initial beneficial ownership information (BOI) reports. Reporting companies created on or after Jan. 1, 2024, and before Jan. 1, 2025, must report their BOI within 90 days of their formation. After Jan. 1, 2025, the BOI must be filed within 30 days.
Reporting companies must report beneficial ownership information electronically through FinCEN's website. Reporting via the FinCEN website is not yet operative, reports will be accepted starting on Jan. 1, 2024.
Who has access to BOI reports? Under the rule, federal, state, and local law-enforcement agencies, foreign governments, and financial institutions would be able to obtain the information, but it would be housed in a secure registry, and many of those seeking it would have to make formal requests and face other restrictions. Some requesters would have to obtain court orders to get the information or work through intermediaries.
Take a deeper dive: To learn more about this reporting requirement, please see the following resources:
- FinCEN’s BOI webpage: https://www.fincen.gov/boi
- Frequently asked questions: https://www.fincen.gov/boi-faqs
- Small entity compliance guide: https://www.fincen.gov/boi/small-entity-compliance-guide
- BOI reporting introduction brochure: https://fincen.gov/sites/default/files/shared/BOI%20Informational%20Brochure%20508C.pdf
- Informational video: https://youtu.be/qQ5ABgZ6Xn4
