- Civil Penalties: Up to $500 per day for each day the violation continues.
- Criminal Penalties: Fines up to $10,000 and/or imprisonment for up to two years.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) started accepting beneficial ownership information reports on January 1, 2024. This is part of the Corporate Transparency Act, enacted in 2021, which aims to curb illicit finance by requiring many companies to report information about the individuals who ultimately own or control them.
Key Points:
- Who Needs to File: Companies created or registered to do business in the U.S. before January 1, 2024, must file by January 1, 2025. Newly created or registered companies in 2024 have 90 days to file after their creation or registration.
- Information Required: Companies must provide the name, date of birth, address, and identifying number (from a non-expired U.S. driver’s license, passport, or other identification document) for each beneficial owner.
- If a company fails to file its beneficial ownership information report by the required deadline, it can face significant penalties. The penalties include:
- Civil Penalties: Up to $500 per day for each day the violation continues.
- Criminal Penalties: Fines up to $10,000 and/or imprisonment for up to two years.
- Complying with these requirements is crucial for companies to avoid these severe consequences.
- How to File: Reports can be filed using the BOI E-Filing System on the FinCEN website.
For more detailed information and to file your report, you can visit the FinCEN website by clicking on this link .
Source: Sankofaonline.com
