On January 01, 2024, the Financial Crimes Enforcement Network (FinCEN) launched a new website for entities to report information regarding the people who ‘own’ or ‘control’ them. ‘Relevant parties’ are now required to submit this information in the form of a Beneficial Ownership Information Report (BOIR).

The Corporate Transparency Act

The new BOIR requirement comes from the Corporate Transparency Act (CTA) passed by Congress in 2021. It became effective on January 01, 2024. The intent behind the beneficial ownership information report to the U.S. Department of the Treasury is to increase visibility. Greater visibility should diminish the opportunity for illegal activities like money laundering. This Act from the United States’ rulemaking body applies broadly to many business entities, including small businesses and large operating companies. Under the CTA, reports are submitted to FinCEN, the government agency responsible for analysing financial transactions in the interest of national security. There are civil and criminal penalties for failing to comply with the CTA, so review the requirements carefully.

Who needs to File a BOIR?

Many business owners are struggling to understand this new legislation and how it applies. The big question on their minds is whether or not they need to comply with beneficial ownership information reporting. Domestic reporting entities and foreign (non-US) entities are required to comply with BOIR.

For more information, please reach out to your Hansen Sweeney contact. We can help you to stay compliant and avoid punitive penalties.