Top 10 Insights on FinCEN’s Beneficial Ownership Reporting Requirements

The Corporate Transparency Act (CTA) and FinCEN’s Beneficial Ownership Information (BOI) reporting requirements impact many U.S. entities. Here are the top 10 points from FinCEN’s FAQ on BOI to keep your organization compliant and avoid penalties:

1. Purpose of BOI Reporting
   BOI reporting aims to combat financial crimes by requiring companies to disclose beneficial ownership, increasing transparency.
2. Who Must Report?
   Corporations, LLCs, and other similar entities, especially those with complex structures, are subject to BOI reporting.
3. Exempt Entities
   Certain entities, including nonprofits, inactive companies, and regulated entities, may be exempt from reporting.
4. Beneficial Owner Definition
   Beneficial owners are individuals with substantial control or ownership (25% or more) of the entity.
5. Required Information
   BOI reports must include the beneficial owner’s name, birthdate, address, and a unique ID number.
6. Filing Timeline
   Companies formed in 2024 or later must report within 90 days of notice, while older companies have until January 1, 2025.
7. How to Submit BOI
   Reports must be filed electronically using the FINCEN online filing system.
8. Updating Information
   Companies must update BOI information within 30 days of any changes to avoid fines.
9. Penalties for Non-Compliance
   Non-compliance could result in fines up to $10,000 and, in severe cases, imprisonment for responsible parties.
10. Resources for Compliance
    FinCEN’s website and legal counsel are invaluable resources for understanding and meeting reporting requirements.

For more details, visit FinCEN’s full FAQ document here.