Originally published in the St. Louis Business Journal, November 2024.
Prepare now as the Jan. 1, 2025, deadline for reporting Beneficial Ownership Information (BOI) is fast approaching.
The Financial Crimes Enforcement Network (FinCEN) has implemented a new regulation under the Corporate Transparency Act (CTA) that requires certain businesses to file Beneficial Ownership Information by Jan. 1, 2025. This mandate aims to enhance transparency and combat illicit activities by creating a federal database of beneficial owners. Compliance with this regulation is required.
What is Beneficial Ownership?
Beneficial Ownership refers to individuals who ultimately own or control a company. This information is crucial for preventing the misuse of corporate entities for money laundering, fraud, terrorist financing, and other illegal activities.
Who needs to file?
The requirement to file BOI applies to a wide range of entities including:
- Corporations and/or Limited Liability Companies
- Entities created by filing a document with the Secretary of State or similar office under the law of state or Indian tribe
There are 23 exemptions, including publicly traded companies. For a full list, visit FinCEN.gov.
What’s the process for filing?
The process for filing your BOI is simple if you’re prepared.
- Gather required information for each beneficial owner, including full name, date of birth, personal physical address, and identification number
- Create a FinCEN ID
- Submit a Beneficial Owner Report using the BOI e-filing system that’s available on FinCen.gov
As always, be cautious before providing any personal information, including BOI, to unknown parties. Stay alert for any potential fraudulent scams surrounding this reporting requirement.
Are there penalties for not filing?
Yes, non-compliance with the BOI reporting requirements can result in significant penalties, including fines and potential criminal charges. Businesses are encouraged to ensure timely and accurate reporting to avoid these consequences.
As the deadline approaches, businesses should review their structures and gather the necessary information to comply with the new regulations. This proactive approach will help avoid penalties.
Act now to ensure that your business completes the FinCEN filing. In doing so, you will help to make the financial system safer and more transparent.
Contact us or call 866-326-7113 to schedule an appointment with one of our First Bank Treasury Management experts.
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Kelly Dulle, Senior Vice President, Managing Director-Treasury Management, leads a team of Treasury Management professionals who provide advice and solutions on commercial payments and managing business cashflow. You may contact Kelly Dulle via email at [email protected]. |