Beneficial Ownership Information Requirement for Businesses
On January 1, 2024, the Corporate Transparency Act went into effect, requiring companies doing business in the United States to report information regarding Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN).
FinCEN’s mission is to safeguard the financial system from illicit use, combat money laundering and its related crimes including terrorism, and promote national security through the strategic use of financial authorities and the collection, analysis and dissemination of financial intelligence.
What's a beneficial owner?
A beneficial owner is a person or entity who owns or controls an interest in a company through direct means, (e.g., shareholdings), or indirectly (e.g., through a broker or financial institution).
Reporting Requirements:
- Existing Companies: Companies created or registered to do business in the U.S. before 1/1/2024 must report by 1/1/2025.
- Newly Created Companies: Companies created or registered to do business in the U.S. in 2024 must report within 90 days of creation/registration.
For more information, including a compliance guide and frequently asked questions section, please visit the FinCEN website.
For more information:
If you have any questions regarding the new requirement, we encourage you to review the FinCEN information and to contact them directly at the following link: www.fincen.gov/contact.
The FinCEN website is the best resource for businesses seeking:
- Up-to-the-minute information regarding beneficial ownership.
- Questions or concerns on beneficial ownership.