The Federal Criminal Enforcement Network (FinCEN) has recently introduced a Beneficial Ownership Information Reporting Requirement that affects all U.S. businesses. This mandate was designed to enhance transparency and combat financial crimes such as money laundering, fraud, and other illicit activities that may be linked to undisclosed business ownership. However, it applies to (almost) all entities in the United States, and it most likely applies to yours.
As a business owner, you need to be aware of the following requirements:
- U.S. businesses must disclose comprehensive information about their ownership structure and their owners. This includes the identification of all beneficial owners, their ownership percentages, and specific personal information.
- Businesses must also continue to report and disclose any changes to the ownership information (including a simple change of address).
- For businesses in existence prior to January 1, 2024, the initial filing deadline for complying with this initial requirement is January 1, 2025.
- For businesses created after January 1, 2024, the filing deadline is within 30 days of the reportable event.
- Failure to meet these deadlines or to provide accurate and complete information can result in severe penalties and legal consequences (notably, up to $10,000 in fines and imprisonment up to 2 years (or 10 years in the event of certain concurrent criminal violations).
Understanding the intricacies of this reporting requirement and ensuring compliance can be a complex and time-consuming process. As such, we encourage you to consult with your legal and accounting professionals in order to better understand the compliance specifics. Many of our clients, business owners, will be subjected to these requirements. As your attorneys, we are monitoring this legislation and the required reporting closely. With our guidance, your business will be well-prepared to meet the regulatory requirements and avoid potential liabilities.
Please do not hesitate to contact our office at info@tcvlaw.com to discuss your specific situation and explore how we can assist you in this matter.
Thank you for continuing to entrust us with your legal needs.
By: Attorney Danielle Taylor