The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has implemented new Beneficial Ownership Information (BOI) reporting rules under the Corporate Transparency Act (CTA) to combat financial crimes and enhance corporate transparency. Businesses must comply with these BOI reporting requirements to avoid penalties and legal complications.
What is BOI Reporting?
BOI reporting refers to the mandatory submission of Beneficial Ownership Information to the Treasury Department to prevent money laundering and illicit financial activities. The BOI rule mandates that companies disclose their beneficial owners, who either have significant control over the entity or own at least 25% of it.
Who Must Submit a BOI Report?
According to the BOI Treasury Department regulations, the following entities are required to submit a BOI report:
- Corporations, LLCs, and other registered businesses in the U.S.
- Foreign entities operating within the U.S.
- Certain trusts and partnerships, depending on ownership structure.
Exemptions apply to larger entities already regulated under financial laws.
Key Details in a BOI Report
The BOI reporting process requires companies to disclose the following details for each beneficial owner:
- Full legal name
- Date of birth
- Current address
- Government-issued identification number (passport, driver’s license, etc.)
All this information must be submitted through FinCEN’s online system.
Deadline and Compliance for BOI Reporting
The BOI rule took effect on January 1, 2024, and new businesses must file their BOI report within 30 days of registration. Existing businesses have until January 1, 2025, to comply. Non-compliance may result in significant penalties from the Treasury Department.
Recent Updates on BOI Reporting Rules
On March 2, 2025, the Treasury Department temporarily suspended enforcement of the Corporate Transparency Act’s BOI reporting requirements for U.S. citizens and domestic companies. However, businesses are still legally obligated to submit their BOI reports to FinCEN.
How to Submit Your BOI Report
Businesses can file their BOI report electronically through FinCEN’s secure online portal. For guidance, visit the FinCEN BOI page on the Treasury Department’s website.
Final Thoughts on BOI Reporting Compliance
Compliance with BOI reporting under the Corporate Transparency Act is essential to avoid fines and legal repercussions. The Treasury Department and FinCEN continue to refine the BOI rule to enhance financial transparency.
For official updates and detailed compliance guidelines, visit FinCEN’s website.
