FINCEN SET TO BEGIN ENFORCEMENT JANUARY 1, 2024:
The Financial Crimes Enforcement Network (FinCEN), part of the U.S. Department of Treasury is set to begin Small Entity Compliance implementation and enforcement of provisions related to Beneficial Owners Reporting as of January 1, 2024.
A Small Entity Compliance Guide (available in multiple languages) has been published by FinCEN to help small entities comply with the requirements of the Beneficial Ownership Information Reporting Rule (the Rule) which was implemented by the Treasury Department under provisions of Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996. The Rule is found at 1010.380 in title 31 of the Code of Federal Regulations (CFR).
The reporting requirements stem from the Rule which requires certain entities to file beneficial ownership information (BOI) reports to FinCEN. These reports contain information about the entity itself and two categories of individuals: (1) Beneficial owners, and (2) Company applicants.
In general, a 'beneficial owner' is an individual who owns or controls at least 25 percent of a company or has substantial control over the company. A 'company applicant' is an individual who directly files or is primarily responsible for the filing of the document that creates or registers the company.
Starting on January 1, 2024, BOI reports must be filed electronically using FinCEN’s secure filing system. FinCEN will store BOI reports in a centralized database and only share this information with authorized users for purposes specified by law.
When You Need to File Reports
- Reports will be accepted starting on January 1, 2024.
- Reporting companies created or registered to do business before January 1, 2024, will have additional time — until January 1, 2025 — to file their initial BOI reports.
- Reporting companies created or registered on or after January 1, 2024, will have 90 days after receiving notice of their company’s creation or registration to file their initial BOI reports.
Finding out More about BOI Reporting
- The FinCEN Small Entity Compliance Guide regarding BOI Reporting can be found at www.fincen.gov/boi/small-entity-compliance-guide.
- Additional information about the Reporting Rule and guidance materials are available at www.fincen.gov/boi.
- FinCEN has issued and will continue to issue frequently asked questions to address specific questions on the topic. They can be found here: www.fincen.gov/boi-faqs.
- In addition, if you have any questions regarding BOI reporting obligations, you should contact FinCEN at www.fincen.gov/contact.
Alert: FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled "Important Compliance Notice" and asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. FinCEN does not send unsolicited requests. Please do not respond to these fraudulent messages, or click on any links or scan any QR codes within them.
