January 28, 2024
The bipartisan Corporate Transparency Act, enacted in 2021 to curb illicit finance, requires many companies doing business in the U.S. to report information about the individuals who ultimately own or control them. This reporting, known as Beneficial Ownership Information (BOI), must be submitted through the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
FinCEN is now accepting BOI reports here.
Secretary of the Treasury Janet Yellen says the BOI registry is important to the country’s economic and national security.
“Corporate anonymity enables money laundering, drug trafficking, terrorism and corruption. It harms American citizens and puts law-abiding small businesses at a disadvantage. Having a centralized database of beneficial ownership information will eliminate critical vulnerabilities in our financial system and allow us to tackle the scourge of illicit finance enabled by opaque corporate structures,” Secretary Yellen says.
FinCEN says BOI filing is simple, secure and free of charge. Companies that are required to comply (“reporting companies”) must file their initial reports by the following deadlines:
- Existing companies: Reporting companies created or registered to do business in the U.S. before Jan. 1, 2024, must file by Jan. 1, 2025.
- Newly created or registered companies: Reporting companies created or registered to do business in the U.S. in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.
BOI reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information. Generally, reporting companies must provide four pieces of information about each beneficial owner:
• Name
• Date of birth
• Address
• The identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State (including a U.S. territory or possession), local government or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used. An image of the document must also be submitted.
The company must also submit certain information about itself, such as its name(s) and address. In addition, reporting companies created on or after Jan. 1, 2024, are required to submit information about the individuals who formed the company.
FinCEN has developed a Small Entity Compliance Guide to walk small businesses through the requirements. Included in the guide is a chart that helps companies determine if they meet the definition of a “reporting company” and do not qualify for an exemption.
Filers can also view informational videos and webinars, find answers to frequently asked questions, connect to the contact center and learn more about how to report at fincen.gov/boi.
