If you are a business owner in the United States, you may need a FinCEN compliance lawyer to help you navigate the complex and evolving regulations of the Financial Crimes Enforcement Network (FinCEN).
Below, you will learn why.
What is the BOI Reporting Rule?
One of the most recent and significant rules issued by FinCEN is the Beneficial Ownership Information (BOI) reporting rule.
The BOI reporting rule requires many corporations, limited liability companies, and other entities in the United States to report information about their beneficial owners—the persons who ultimately own or control the company—to FinCEN.
The BOI reporting rule aims to enhance transparency and accountability in the U.S. financial system and to prevent the misuse of shell companies and other opaque structures by criminals, terrorists, and corrupt actors.
FinCEN will store the reported information in a secure, non-public database and will share it only with authorized law enforcement agencies, financial institutions, and regulators for legitimate purposes.
Who Needs to Comply with the BOI Reporting Rule?
The BOI reporting rule applies to reporting companies, which are defined as any corporation, limited liability company, or similar entity that:
- Is created by filing a document with a secretary of state or a similar office under the law of a state or Indian Tribe, or
- Is formed under the law of a foreign country and registered to do business in the United States.
If you are not sure whether your entity is a reporting company or qualifies for an exemption, you should consult a FinCEN compliance lawyer who can help you determine your status and obligations under the BOI reporting rule.
What Information Needs to Be Reported to FinCEN?
Under the BOI reporting rule, reporting companies must file BOI reports with FinCEN containing identifying and registration data about the reporting company, as well as information about two categories of individuals: (1) the beneficial owners; and (2) the company applicants, who are the individuals who filed a document to create the reporting company or register it to do business.
The information that needs to be reported for each beneficial owner and company applicant includes:
- Full legal name;
- Date of birth;
- Address; and
- A unique identifying number from an acceptable identification document (such as a passport or driver’s license.
Why You Need a FinCEN Compliance Lawyer to Help You with the BOI Reporting Rule?
The BOI reporting rule is a complex and evolving regulation that imposes significant responsibilities and risks on reporting companies. If you own or control a reporting company, you need a FinCEN compliance lawyer to help you with the following:
- Assessing your status and obligations under the BOI reporting rule and determining whether you qualify for any exemption;
- Identifying and verifying your beneficial owners and company applicants and collecting the required information from them;
- Filing accurate and complete BOI reports with FinCEN within the prescribed deadlines and updating them as necessary;
- Obtaining and maintaining FinCEN identifiers for yourself and your beneficial owners and company applicants;
- Implementing and documenting policies and procedures to ensure compliance with the BOI reporting rule and other FinCEN regulations; and
- Responding to requests and inquiries from FinCEN, law enforcement agencies, financial institutions, and regulators regarding your BOI reports and beneficial ownership information.
Ready to Get Started? Contact Us Today!
At Jurado & Associates, P.A., we have a team of experienced and knowledgeable FinCEN compliance lawyers who can help you with all aspects of the BOI reporting rule and other FinCEN regulations. We understand the challenges that the BOI reporting rule presents for your business, and we can help you achieve compliance.
Whether you need assistance with filing your initial BOI report, updating your existing BOI report, obtaining a FinCEN identifier, or dealing with any other issue related to the BOI reporting rule, we are here to help.