What is BOIR (Beneficial Ownership Information Reporting)?
Beneficial Ownership Information Reporting (BOIR) is the formal process through which companies disclose essential details about their beneficial owners to regulatory bodies like the Financial Crimes Enforcement Network (FinCEN). This process is mandated by the Corporate Transparency Act (CTA) and other financial regulations to ensure transparency and prevent the misuse of corporate entities for illegal activities like money laundering, fraud, and tax evasion.
What information is required for BOIR?
Companies must submit specific details about individuals who ultimately control or own a significant portion of the company, including:
- Names of beneficial owners.
- Addresses (residential or business).
- Dates of birth.
- Ownership percentages or level of control.
This information must be regularly updated, particularly when there are changes in ownership or control, ensuring that the data submitted to FinCEN remains accurate and up to date.