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Beneficial Ownership Transparency Takes Effect in United States
Washington D.C. - The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has begun accepting beneficial ownership information reports from companies doing business in the United States, marking a major step forward in curbing illicit finance.
A Historic Step Forward
The bipartisan Corporate Transparency Act, enacted in 2021, requires many companies to report information about the individuals who ultimately own or control them. The law aims to prevent money laundering, drug trafficking, terrorism, and corruption by eliminating critical vulnerabilities in the financial system.
“The launch of the United States’ beneficial ownership registry is a historic step forward to protect our economic and national security,” said Secretary of the Treasury Janet L. Yellen. “Having a centralized database of beneficial ownership information will allow us to tackle the scourge of illicit finance enabled by opaque corporate structures.”
Filing with FinCEN
Filing with FinCEN is simple, secure, and free of charge.
- Existing companies created or registered before January 1, 2024 must file by January 1, 2025.
- Newly created or registered companies in 2024 have 90 calendar days to file after receiving actual or public notice of their company’s creation or registration.
Required Information
Beneficial ownership information reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information.
Reporting companies must provide four pieces of information about each beneficial owner:
- Name
- Date of birth
- Address
- Identifying number and issuer from a non-expired U.S. driver’s license, passport, or identification document issued by a state or local government
The company must also submit certain information about itself, such as its name(s) and address. Additionally, reporting companies created on or after January 1, 2024 are required to submit information about the individuals who formed the company.
Resources and Support
FinCEN is committed to providing resources and support for small businesses to make filing quick and easy. The agency’s Small Entity Compliance Guide provides a step-by-step guide to the requirements in plain language. Filers can also view informational videos, webinars, and frequently asked questions on FinCEN’s website at www.fincen.gov/boi.