The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced a notice of proposed rulemaking to extend the deadline for companies created or registered in 2024 to file their initial beneficial ownership information reports.
The proposal, announced Wednesday, would amend the reporting deadline for such companies to 90 days instead of the 30 days initially proposed. The rulemaking would not affect any other aspects of the rules, which could see changes before the end of the year regarding the reporting form.
The registry is scheduled to go live in 2024.
The proposal would provide reporting companies created or registered in 2024 additional time to understand their obligations under the rule and familiarize themselves with FinCEN’s educational materials, the agency said. Companies created or registered in 2025 would not receive any additional relief, as they would be in a better position to file their required initial reports within 30 days, FinCEN argued.
“FinCEN remains committed to developing a beneficial ownership database that is highly useful to law enforcement and national security agencies while at the same time minimizing burdens on reporting companies to the greatest extent possible,” said FinCEN Director Andrea Gacki in a press release. “We anticipate that the proposed extension of the … reporting deadline for the first year of implementation will increase compliance, reduce burden on reporting companies, and promote the creation of a highly useful database.”
Comments on the proposal are due Oct. 30.