As of January 1, 2024, the Corporate Transparency Act (CTA), enacted by FinCEN (Financial Crimes Enforcement Network), has come into effect in the United States. This law introduces the mandatory annual Beneficial Ownership Information (BOI) report, which applies to all legal entities registered in the U.S.
Objectives of the Corporate Transparency Act (FinCEN)
The primary goal of this law is to enhance corporate transparency and prevent the misuse of companies for illicit activities, including money laundering, terrorist financing, and other financial crimes. The law also aims to ensure the identification of companies’ beneficial owners, allowing government authorities to monitor and regulate legal entities effectively.
FinCEN (Financial Crimes Enforcement Network) is a financial intelligence agency under the U.S. Department of the Treasury. Its primary function is to collect, analyze, and disseminate financial information to combat financial crimes, including money laundering and terrorist financing. FinCEN collaborates with national and international agencies to ensure effective oversight of financial transactions.
Who Must File the BOI Report and When?
- All legal entities registered in the U.S.
- Beneficial owners – individuals who exercise substantial control over the reporting company (directly or indirectly) or own or control at least 25% of the company’s ownership interests
- New BOI deadline March 21, 2025 – for companies registered before January 1, 2024 (this replaces the previous deadline of February 18, 2025).
- 90 days from the registration date – for companies established after January 1, 2024.
What Information is Required for the BOI Report?
To file the BOI report, the following information must be provided:
- A scanned copy of the first page of the passport for all beneficial owners.
- Residential address in English, including postal code, for each beneficial owner.
Important: The information submitted in the BOI report is not publicly available.
Penalties for Failing to File the BOI Report
Failure to submit the BOI report on time may result in severe consequences, including:
- A $500 fine per day for each day of non-compliance
- Up to $10,000 in fines and imprisonment for up to two years for severe violations
How Can We Help?
Our team is ready to assist you in preparing and filing the BOI report. We will handle all necessary documentation, issue an invoice, and request all required information to ensure compliance with FinCEN regulations.
If you have any questions or require a consultation, please contact us. We are committed to helping you comply with the Corporate Transparency Act and ensure the timely filing of your BOI report.
Our team will be happy to provide consultation on matters relevant to you. We are available Monday to Friday from 9:00 AM to 7:00 PM. To receive a consultation, send your request through the form below or message us on Telegram, Viber, or WhatsApp.
