Need to know: FinCEN beneficial ownership information reporting

Questions raised

The calendar has turned to 2024, meaning many small businesses, private companies, and other entities are now required to file their beneficial ownership information (BOI) with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).

The Corporate Transparency Act (CTA), enacted by Congress in 2021, requires reporting companies—both foreign and domestic—that file incorporation paperwork with secretaries of state or tribal authorities to also file BOI with FinCEN. The agency estimated more than 32 million reporting companies will be required to report their BOI to the registry in 2024.

The registry is designed to assist FinCEN and law enforcement in understanding who owns corporations and shell companies to help locate and capture parties responsible for money laundering, financing terrorist groups, and other financial crime.

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