The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) estimated it will cost reporting companies a total of $22.7 billion to comply with the requirements of the agency’s beneficial ownership registry in its first year.

In a notice for request and comment posted in the Federal Register on Tuesday, FinCEN projected more than 32 million reporting companies will be required to file initial beneficial ownership reports in Year 1 of the registry (2024). The estimated total costs for those companies include $21.7 billion for initial reports and $1 billion for updated reports. Updated reports are required when there is a material change in ownership of the reporting entity.

The total number of entities filing reports to the registry in Year 2 will drop to a little less than 5 million, FinCEN said. Total costs to companies to file initial reports in Year 2 will range from $425.6 million to $13.1 billion; for filing updated beneficial ownership reports, $547 million to $8.1 billion.