FinCEN Compliance: Everything Companies Need to Know About the Beneficial Ownership Information Report (BOIR)
From January 1, 2024, the Financial Crimes Enforcement Network (FinCEN), an agency of the US Department of the Treasury, has introduced new transparency requirements for many US and foreign companies operating in the US. With the entry into force of the Corporate Transparency Act, corporate entities are required to report details on their beneficial owners through the Beneficial Ownership Information Report (BOIR).
What is FinCEN Compliance and the BOIR?
The new legislation was created with the objective of improving transparency in the US financial sector, combating money laundering and fraud. The FinCEN now requires specific business entities, both US and foreign, to report their beneficial owners, namely the individuals who own or control a significant share of a company.
Who needs to file the BOIR?
He DRINK must be filed by all companies identified as “reporting companies,” unless they fall under a specific list of exemptions (available at the Chapter 1 of the Small Entity Compliance Guide (by FinCEN). For example, publicly traded companies and certain regulated entities are exempt.
What needs to be reported?
The BOIR report must include information about:
- Full legal name of the company and any trade names.
- Address complete in the U.S.
- Articles of incorporation or initial registration for foreign companies.
- TIN (Taxpayer Identification Number) and other tax identifiers.
For each beneficial owner and corporate applicant, the following must also be reported:
- Name, date of birth, and address.
- Valid identification document (such as a passport or driver's license).
Submission Deadlines
FinCEN accepts BOIRs from January 1, 2024. Companies in existence as of the effective date of the regulation must submit their initial report by January 1, 2025. New companies registered after January 1, 2024, on the other hand, have 90 days from the time of registration to submit their BOIR. Any changes to the information provided must be updated by 30 days.
Where and How to Submit the BOIR
The BOIR can be submitted exclusively online through the dedicated portal: https://boiefiling.fincen.gov. Link2America customers can also count on us to handle the entire process, ensuring compliance with FinCEN regulations in a simple and secure way.
Risks and Penalties for Non-Compliance
Companies that fail to comply with these requirements by the established deadlines risk incurring severe penalties from the US Tax Office, with further legal implications.
How Link2America Can Help You
Link2America offers comprehensive support in managing the FinCEN compliance process, ensuring a simple and seamless transition to the new regulations. For more information or to request assistance, please contact us here: info@link2america.us
Please don't hesitate to contact us for further details or clarification—we're here to simplify the process and ensure your peace of mind and security!
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