Proposed rulemaking would amend the Financial Crimes
Enforcement Network’s (FinCEN) reporting deadline threefold for certain companies
subject to the agency’s beneficial ownership information (BOI) requirements. FinCEN
believes the extended deadline will benefit companies by affording more time to
gain an understanding of their regulatory obligations following their initial
registration.
If implemented, reporting companies created or registered with
FinCEN in 2024 would have 90 days to file their initial BOI reports, rather
than 30 days, FinCEN noted in a press release. No other changes would take
effect.
Timing is everything when it comes to the applicability of
the amended rule. Entities created or registered before Jan. 1, 2024, would
have until Jan. 1, 2025, to file their initial BOI reports with FinCEN. Companies
created or registered on or after Jan. 1, 2025, would have 30 days to do so, in
line with the current reporting deadline.
“FinCEN remains committed to developing a beneficial
ownership database that is highly useful to law enforcement and national
security agencies, while at the same time minimizing burdens on reporting
companies to the greatest extent possible,” FinCEN Director Andrea Gacki said
in the release. “We anticipate that the proposed extension of the BOI reporting
deadline for the first year of implementation will increase compliance, reduce
burden on reporting companies, and promote the creation of a highly useful
database.”
The agency noted the deadline extension will provide added
time for companies to become familiar with FinCEN’s BOI reporting guidance and
educational materials, located at www.fincen.gov/boi.
Additionally, the regulator hopes these entities will be able to resolve questions
arising about the initial reporting process.
However, after Jan. 1, 2025, such entities will be expected
to be familiar with BOI reporting stipulations and be capable of filing timely
BOI reports as required.
FinCEN is encouraging all interested parties to submit
comments on its notice of proposed rulemaking by Oct. 30.