In an effort to crack down on the use of shell companies for money laundering, tax evasion, and hiding dirty money, new federal regulations now require businesses to report their Beneficial Owners to a national database.

Which businesses need to report?
Essentially, all U.S. companies (including LLCs, corporations, and partnerships) will need to identify and report their beneficial owners to the government.

Exempt entities include certain financial institutions, publicly traded companies, entities with substantial U.S. presence, nonprofit and charitable organizations, and a few other entity types.

Who is a Beneficial Owner and Applicant?
A beneficial owner is generally defined as any individual who directly or indirectly owns 25% or more of the equity interests of a reporting company. This could include shareholders, directors, and even family members of the owners.

An applicant is any individual who files an application to form a U.S. entity or register a foreign entity to operate in the United States.

What is the deadline?
Existing companies: Reporting companies created or registered to do business in the United States before January 1, 2024 must file by January 1, 2025.

Newly created or registered companies: Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.

Where do I file?
Filing is simple, secure, and free of charge.

File online at https://boiefiling.fincen.gov.

Are there penalties?
Intentionally failing to properly file complete and accurate beneficial ownership information can lead to stiff penalties. Civil penalties reach up to $500 per day, while criminal charges carry potential prison time and even steeper fines. And falsely reporting data or willful non-compliance creates liability as well.

Where can I find more information?
FinCEN has developed a Beneficial Ownership page to assist and educate businesses on these new reporting requirements. Visit www.fincen.gov/boi.

Customers will be able to access guidance documents, answers to frequently asked questions, introductory videos and other resources for businesses to help them understand the requirement to report their information to FinCEN.

Need Help?
We want to ensure your company is prepared to meet these new federal reporting rules by the deadline. Please review the new requirements and reach out to us if you need any assistance with getting set up for beneficial ownership reporting. We would be happy to help explain the specifics for your business entity and make sure you have a reporting process in place.

For further assistance, please call 918-392-2500 and ask to speak to the BSA Officer.