What is FinCEN BOI Reporting?
FinCEN BOI reporting involves submitting beneficial ownership data to the Financial Crimes Enforcement Network (FinCEN) as part of compliance with anti-money laundering (AML) regulations under the Corporate Transparency Act (CTA). The purpose of BOI reporting is to increase corporate transparency and help prevent illicit financial activities such as money laundering, terrorist financing, and tax evasion.
Entities subject to BOI reporting must disclose the identities of individuals who have significant control or ownership over the company. These individuals are known as beneficial owners. The information submitted includes details such as the beneficial owners’ names, dates of birth, addresses, and a unique identifying number from an acceptable document, such as a passport or driver’s license.
The collected BOI is stored in a secure database maintained by FinCEN and is only accessible to authorized entities, such as law enforcement agencies, to ensure privacy while supporting efforts to combat financial crimes. Compliance with FinCEN BOI reporting is crucial for companies to avoid penalties and meet federal regulatory requirements.