Updates to Beneficial Ownership Reporting to FinCen

Update for BOI Reporting - Effective 12/10/24

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

Information sourced from FinCEN website. Read more about the updates here: https://www.fincen.gov/boi

Previous Guidelines 

Banks have been responsible for collecting beneficial ownership information (BOI) for businesses as required by the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury. Now, FinCen has implemented a  new rule  where businesses that meet the definition of a "reporting company" are required to report information as well. 

What You Need to Know

Beginning on January 1, 2024, businesses in the United States will now have the responsibility of reporting specific information about the company, including its beneficial owners (the individuals who ultimately own or control the company) and in some circumstances, its company applicants (the individuals who filed the documentation to create the reporting company.)

Your company may be a reporting company and will need to report information about its beneficial owners if your company is: 

A.     A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe;

B.     A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.

Deadlines

• Existing Businesses - Any domestic or foreign reporting company created before January 1, 2024 will have until January 1, 2025 to file their initial BOI.
• New Businesses - Any domestic or foreign reporting company created on or after January 1, 2024 but before January 1, 2025 must file an initial report within 90 calendar days of the earlier of (a) the date on which the entity receives actual notice that its creation has become effective or (b) the date on which Department of Financial Institutions (in Wisconsin) first provides public notice, such as through a publicly accessible registry, that the reporting company has been created. 
• New Businesses After 12/31/2024 -- Entities created or registered on or after January 1, 2025 will have 30 calendar days to file their BOI reports with FinCEN.

How to Report

Reporting companies will have to report beneficial ownership information electronically through FinCEN's website: Beneficial Ownership Information Reporting | FinCEN.gov. Reports will be accepted starting on January 1, 2024.

More Information

For more information on this reporting change, visit Beneficial Ownership Information Reporting | FinCEN.gov or contact your SFB lender.