Attorney Published Article
FinCEN Invites Comment on Final Beneficial Ownership Information Reporting RuleRead Time: 1 min
On January 17, 2023, the Financial Crimes Enforcement Network (FinCEN) published a notice inviting comment on the Beneficial Ownership Information Reporting Requirements final rule (Final BOI Reporting Rule) that was published on September 30, 2022. Interested parties are invited and welcome to submit comments on or before March 20, 2023.
The Final BOI Reporting Rule requires reporting entities to file reports with FinCEN that identify the beneficial owners of the entity. Additionally, entities created or registered to do business on or after January 1, 2024, have additional reporting requirements, which include identifying the individual who created or registered the entity, and the individual who was primarily responsible for directing or controlling the creation or registration filing of the entity. Further, the regulations detail who must file a report, the information required in the report, and the report due dates. Entities must certify that the report is true, correct, and complete.
FinCEN provided estimates for reporting time, cost, and number of respondents, and concluded that the Final BOI Reporting Rule does not impose a significant burden on reporting entities. Further, FinCEN assumed that reporting entities already have the equipment and tools needed to comply with the regulatory requirements that are prescribed by the Final BOI Reporting Rule. Any greater burden would be impacted by the complexity of the entity’s beneficial ownership structure. Ultimately, the Final BOI Reporting Rule requirements are intended to minimize the burden on reporting entities all while being designed to help prevent and combat illicit financial activity and enhance the strength and transparency of the U.S. financial system.
Reprinted with permission from the American Bar Association’s Business Law Today January Month-In-Brief: Business Regulation & Regulated Industries.