FinCEN Set to Begin Enforcement January 1, 2024


The Financial Crimes Enforcement Network (FinCEN), part of the U.S. Department of Treasury is set to begin Small Entity Compliance implementation and enforcement of provisions related to Beneficial Owners Reporting as of January 1, 2024.

A Small Entity Compliance Guide (available in multiple languages) has been published by FinCEN to help small entities comply with the requirements of the Beneficial Ownership Information Reporting Rule (the Rule) which was implemented by the Treasury Department under provisions of Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996. The Rule is found at 1010.380 in title 31 of the Code of Federal Regulations (CFR).

The reporting requirements stem from the Rule which requires certain entities to file beneficial ownership information (BOI) reports to FinCEN. These reports contain information about the entity itself and two categories of individuals: (1) Beneficial owners, and (2) Company applicants.

In general, a ‘beneficial owner’ is an individual who owns or controls at least 25 percent of a company or has substantial control over the company. A ‘company applicant’ is an individual who directly files or is primarily responsible for the filing of the document that creates or registers the company.


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