In a move aimed at providing relief to businesses, the Financial Crimes Enforcement Network (FinCEN) has announced a significant extension for companies created or registered in 2024 to file their initial Beneficial Ownership Information (BOI) reports. The deadline has now been stretched from the initial 30 calendar days to a more accommodating 90 calendar days.
RIN 1506-AB62 Ruling: A Breather for 2024 Registrations
The 90-day window begins either on the date a company receives official notice of its effective creation or registration or when the secretary of state publicly announces the company’s registration. This extension seeks to grant sufficient time for both company applicants and those registered in 2024 to comprehend the new regulatory obligation and compile the necessary information for their BOI reports, as stated by FinCEN Director Andrea Gacki in a recent news release.
Corporate Transparency Act in Action: BOI Reporting Takes Center Stage
The BOI reporting requirement, born out of the anti-money laundering initiative enshrined in the Corporate Transparency Act, P.L. 116-283, in 2021, mandates the reporting of Beneficial Ownership Information to FinCEN and applies to various companies.
Navigating the Transition: Extended Deadlines for Pre- and Post-2024 Entities
For reporting companies created or registered before January 1, 2024, the deadline for filing initial BOI reports with FinCEN is extended until January 1, 2025. Meanwhile, reporting companies created or registered on or after January 1, 2025, will still adhere to the original 30-day deadline.
Final Rule: FinCEN Adopts Changes Proposed in September
This final rule incorporates changes proposed by FinCEN in September, aiming to streamline the transition for businesses in understanding and meeting this new regulatory requirement. Interested parties can find additional guidance and educational materials on FinCEN’s dedicated BOI webpage. For companies with inquiries regarding the upcoming reporting requirements, FinCEN can be contacted online.
FinCEN’s Strategic Move: A Thoughtful Approach to Facilitate Compliance
This extension underscores FinCEN’s thoughtful approach to easing the compliance burden on businesses. It emphasizes adapting to evolving anti-money laundering initiatives in the ever-changing financial landscape.
Source ( Journal of Accountancy News).
