The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has started to accept beneficial ownership information reports, in accordance with the Corporate Transparency Act.
The act, enacted in 2021, is designed to curb illicit finance. It requires many companies doing business in the United States to report information about the individuals who ultimately own or control them.
“The launch of the United States’ beneficial ownership registry marks a historic step forward to protect our economic and national security,” Secretary of the Treasury Janet Yellen said. “Corporate anonymity enables money laundering, drug trafficking, terrorism, and corruption. It harms American citizens and puts law-abiding small businesses at a disadvantage. Having a centralized database of beneficial ownership information will eliminate critical vulnerabilities in our financial system and allow us to tackle the scourge of illicit finance enabled by opaque corporate structures.”
Companies must file their initial reports by the following deadlines:
Existing companies that are required to comply must file by Jan. 1, 2025, while newly created or registered companies have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.
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.
Generally, reporting companies must provide four pieces of information about each beneficial owner: name; date of birth; address; and the identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State. local government, or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used.
The company must also submit certain information about itself, such as its name(s) and address. In addition, reporting companies created on or after Jan. 1, 2024, are required to submit information about the individuals who formed the company.