FinCEN Begins Accepting Beneficial Ownership Information Reports Under Corporate Transparency Act

As of January 1, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has started accepting beneficial ownership information reports as mandated by the Corporate Transparency Act (CTA). This bipartisan act, enacted in 2021, aims to combat illicit finance by requiring many companies operating in the United States to disclose information about their beneficial owners.

Companies that are required to comply, known as “reporting companies,” must submit specific information about their beneficial owners. This includes the owner’s name, date of birth, address, and an identifying number and issuer from a non-expired U.S. driver’s license, passport, or other identification documents. For companies created or registered in 2024, additional information about the individuals who formed the company (company applicants) is also required.

The filing deadlines vary depending on the company’s status. Existing companies created or registered before January 1, 2024, have until January 1, 2025, to file their initial reports. New companies formed or registered in 2024 must file within 90 calendar days after receiving notice of their creation or registration. It is important to note that this reporting is not an annual requirement; reports only need to be submitted once unless updates or corrections are necessary.

FinCEN has also clarified the reporting obligations for dissolved entities. Companies that dissolve or merge out of existence still have to file their beneficial ownership information reports before ceasing to exist. If a company ceases to exist before filing, its senior officers are personally responsible for ensuring the report is filed. Foreign companies that withdrew their registration to do business in the U.S. before January 1, 2024, are exempt from this requirement.

To facilitate compliance, FinCEN has provided resources such as a Small Entity Compliance Guide, informational videos, webinars, and a contact center. These resources are available on the FinCEN website to help small businesses navigate the reporting process efficiently.