The Financial Crimes Enforcement Network (FinCEN) last Wednesday proposed extending the deadline for certain companies to file their initial beneficial ownership information (BOI) reports during the first year of the new requirement, which takes effect January 1, 2024.
If the proposal is adopted, the filing deadline will be extended from 30 calendar days after receiving actual or public notice of its creation or registration to 90 calendar days after receiving actual or public notice of its creation or registration.
No other changes to the reporting deadlines would be made, including for entities created or registered before January 1, 2024 (who have until January 1, 2025 to file their initial BOI report), or for entities created or registered on or after January 1, 2025, which will have 30 calendar days after receiving actual or public notice of their creation or registration to file their initial BOI report.
“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.”
FinCEN Director Andrea Gacki
According to FinCEN, the proposed extension will give entities created or registered in 2024 additional time to understand their regulatory obligations, obtain the required information, and become familiar with FinCEN’s guidance and educational materials. FinCEN encourages the public to review this NPRM and provide comments.
“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,” said FinCEN Director Andrea Gacki.
“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,” she said.
A final rule implementing the BOI reporting requirements of the Corporate Transparency Act (CTA) was issued in September 2022, and it is a part of the Anti-Money Laundering Act of 2020. The CTA establishes such uniform reporting requirements for certain types of corporations, limited liability companies, and other similar entities created in or registered to do business in the United States.
Public comments on the deadline extension must be submitted by October 30.