Businesses Will Now Be Responsible to Report Beneficial Ownership to FinCen
Banks have been responsible for reporting beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury. That rule is about to change, and now companies that meet the definition of a "reporting company" will be required to submit a report.
What You Need to Know
Beginning on January 1, 2024, businesses in the United States will now have the responsibility of reporting specific information about the company, including its beneficial owners (the individuals who ultimately own or control the company) and in some circumstances, its company applicants (the individuals who filed the documentation to create the reporting company.)
Your company may be a reporting company and will need to report information about its beneficial owners if your company is:
A. A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe;
B. A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.
- Existing Businesses - Any domestic or foreign reporting company created before January 1, 2024 will have until January 1, 2025 to file their initial BOI.
- New Businesses - Any domestic or foreign reporting company created on or after January 1, 2024, must file an initial report within 30 calendar days of the earlier of (a) the date on which the entity receives actual notice that its creation has become effective or (b) the date on which Department of Financial Institutions (in Wisconsin) first provides public notice, such as through a publicly accessible registry, that the reporting company has been created. FinCEN is proposing to extend this timeline to 90 days only for reporting companies created on or after January 1, 2024, and before January 1, 2025.
How to Report
Reporting companies will have to report beneficial ownership information electronically through FinCEN's website: Beneficial Ownership Information Reporting | FinCEN.gov. Reports will be accepted starting on January 1, 2024.
For more information on this reporting change, visit Beneficial Ownership Information Reporting | FinCEN.gov or contact your SFB lender.