What are Penalty Provisions?
Penalty provisions outline the legal consequences for companies or individuals who fail to comply with Beneficial Ownership Information (BOI) reporting regulations under the Corporate Transparency Act (CTA). Entities that do not submit accurate and timely BOI reports to FinCEN may face significant penalties, both civil and criminal.
Key Penalties for Non-Compliance:
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Civil Penalties: Entities that fail to report or provide false information may incur fines. Civil penalties can reach up to $591 per day for each day the violation continues.
- Criminal Penalties: Willfully providing false information or deliberately failing to file BOI reports can result in criminal penalties, including fines up to $10,000 and imprisonment for up to two years.
Penalty provisions are designed to ensure that entities take their BOI reporting obligations seriously, as compliance with FinCEN’s regulations is essential for preventing financial crimes such as money laundering, fraud, and tax evasion.
