FinCEN Beneficial Ownership Information Report (BOIR)

The FinCEN's BOIR requires specific companies to reveal their beneficial owners and company applicants, aiming to fight financial crimes and promote transparency. This initiative is a significant step towards ethical business practices, mandated by the Corporate Transparency Act of 2021. It focuses on revealing the identities behind corporate entities, thereby combating financial fraud and enhancing national security.

The BOI reporting guidelines identify "beneficial owners" as those with direct or indirect control over a company. Despite its extensive reach, exemptions exist, emphasizing the need for companies to maintain and update their reported information accurately.

Starting January 1, 2024, FinCEN will accept BOI reports through a developing electronic system. Reporting deadlines vary based on when a company was established or registered.

Overview of Reporting Requirements

"Reporting companies" include domestic entities formed in the U.S. and foreign entities registered to do business in the U.S. There are 23 exemptions, and the BOI reporting process involves providing detailed information about beneficial owners and company applicants.

The following table summarizes the 23 exemptions:
  1. Securities reporting issuer
  2. Governmental authority
  3. Bank
  4. Credit union
  5. Depository institution holding company
  6. Money services business
  7. Broker or dealer in securities
  8. Securities exchange or clearing agency
  9. Other Exchange Act registered entity
  10. Investment company or investment adviser
  11. Venture capital fund adviser
  12. Insurance company
  13. State-licensed insurance producer
  14. Commodity Exchange Act registered entity
  15. Accounting firm
  16. Public utility
  17. Financial market utility
  18. Pooled investment vehicle
  19. Tax-exempt entity
  20. Entity assisting a tax-exempt entity
  21. Large operating company
  22. Subsidiary of certain exempt entities
  23. Inactive entity

Key reporting aspects include legal names, addresses, formation jurisdictions, identification numbers, and documentation images for beneficial owners and company applicants.

Reporting timelines and obligations are clearly defined, with FinCEN offering a grace period for correcting mistakes to encourage compliance and avoid penalties.

Seehttps://www.federalregister.gov/for information on businesses impacted by the Corporate Transparency Act (CTA). RegClear is a technology platform and not a law firm. Our advice, products, and services are not a substitute for those of an attorney or law firm. This site provides general information that should not be construed as legal advice. You may seek to consult with an attorney to confirm your BOI reporting obligations.