Starting January 1, 2025, many companies in the U.S. will be required to report information about the individuals who own or control them, known as beneficial owners, to the Financial Crimes Enforcement Network (FinCEN). This new requirement is part of an effort by the Federal Government to increase transparency and combat financial crimes. Here’s what you need to know to prepare:
Why Is This Change Happening?
Keeping track of who owns businesses is meant to curb illicit activities like money laundering, terrorism financing, and other financial crimes by making it harder for individuals engaging in suspicious activities to hide their identities behind business structures. The goal is to promote a more transparent and secure business environment in the U.S.
What’s Different About this Reporting?
Unlike financial institutions, which gather BOI for customer verification, this new requirement mandates that businesses themselves report this information directly to the government. FinCEN will store this data in a secure, non-public database that only authorized government agencies and financial institutions can access for specific compliance purposes.
When Do These Requirements Take Effect?
Here are some dates to be aware of:
- Existing Companies: Businesses created or registered before January 1, 2024, will have until January 1, 2025, to file their initial BOI report.
- New Companies (January 1, 2024 – January 1, 2025): Businesses created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days from receiving notice of their creation or registration to file their report.
- Future Companies (Post-January 1, 2025): Companies formed on or after January 1, 2025, will need to file their BOI report within 30 calendar days of receiving notice of their creation or registration.
Good news – There’s no fee for submitting your beneficial ownership information report to FinCEN.
How to Report Your Company’s Beneficial Ownership Information
If your company is required to report its beneficial ownership information, you will need to do so electronically. For more detailed instructions on how to file, visit FinCEN’s BOI E-Filing website.
Additional Resources
For more information on BOI reporting and to ensure you’re compliant with the new requirements, check out the following resources:
- Reporting Page: Learn more about the BOI reporting requirements and how they impact your business.
- Reference Guide
- Frequently Asked Questions: Find answers to common questions about the new reporting requirements.
Ready to File Your Report?
The new BOI reporting requirements are an important step toward greater transparency in the business world. By understanding your obligations and taking action now, you can ensure your business is compliant and avoid any potential penalties. Don’t wait – take action now to ensure your business complies with these changes. TrueNorth Compliance Services is here to help you navigate these changes and ensure you’re prepared. Contact us today for more information on how we can assist with your compliance needs.