Do you have questions about the upcoming reporting requirements of the Financial Crimes Enforcement Network (FinCEN) and the impact on your business? FinCEN is a bureau of the U.S. Department of the Treasury committed to safeguarding the financial system from illicit use and combating money laundering while promoting national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.

While it may seem that small and mid-sized businesses are not the focus of a network such as this, that is precisely where the biggest impact will be felt. Many larger businesses and corporate entities are exempt from this reporting due to other reporting and governance mechanisms already in place. Please continue reading for more information on what you need to be aware of before this reporting requirement takes effect.

The Corporate Transparency Act (CTA) was enacted as part of the National Defense Act for Fiscal Year 2021 and mandates that millions of entities report their beneficial ownership information (BOI) to FinCEN beginning in 2024.

Click here for an informational video from the Department of the Treasury:

https://www.youtube.com/watch?v=qP5V9k3ypl0

Who is required to report - All domestic and foreign entities that have filed formation or registration documents with a U.S. State (or Indian tribe), unless they meet one of 23 exceptions

When are you required to report - New entities (created/registered after December 31, 2023) must file within 30 days. Existing entities must file before January 1, 2024.

What will you be required to report - Business name, address, IRS identification numbers, owner information, etc.

Are there penalties for noncompliance? - Yes

For more information please watch the video above or review the helpful documents here: https://www.aicpa-cima.com/resources/landing/beneficial-ownership-information-boi-reporting