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Prepare for Compliance: Essential Steps for Beneficial Ownership Reporting Requirements

Updated: Oct 4


Businessman hand signing contract, close-up.

The U.S. Department of the Treasury has unveiled a nationwide public service announcement (PSA) campaign to educate business owners about the new beneficial ownership reporting requirements. This initiative by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) is part of a broader effort to ensure compliance with the Corporate Transparency Act of 2021, which aims to combat illicit finance by enhancing transparency and ensuring that financial crimes are harder to conceal.

 

Why This Matters

The bipartisan Corporate Transparency Act mandates that many businesses disclose basic information about their ultimate owners or controllers to FinCEN. It is a significant step toward improving financial transparency and preventing money laundering, terrorist financing, and other illicit activities.

 

Steps to Prepare

The reporting process is simple, secure, and free of charge, with most companies required to complete their filings by January 1, 2025. Businesses must follow these key steps to ensure compliance:

  1. Identify Your Beneficial Owners: Determine who ultimately owns or controls the business.

  2. Gather Required Information: Collect essential details about these individuals, including full name, date of birth, address, and identification numbers.

  3. Complete Filing: Submit the information to FinCEN before the deadline.

 

Stay Informed About Beneficial Ownership Reporting

Since the Beneficial Ownership Information Reports database opened on January 1, 2024, FinCEN has already received millions of reports from companies across all 50 states, reflecting a strong start in compliance.

 

For more details on the reporting process and to ensure your business meets the upcoming deadlines, the Treasury Department’s PSA campaign is a valuable resource for understanding these requirements, including:


Preparing now will help ensure compliance and avoid last-minute issues as the deadline approaches.

 

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