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Understanding the Beneficial Ownership Information (BOI) Report

Filing must be completed by January 1, 2025

What is the BOI Report?

The Beneficial Ownership Information (BOI) Report is a document that entities file with the U.S. Financial Crimes Enforcement Network (FinCEN) to disclose information about individuals who have significant control or ownership of the business. This requirement aims to enhance financial transparency and prevent activities like money laundering, tax evasion, and terrorist financing.

Who Needs to File a BOI Report?

Under the Corporate Transparency Act (CTA), the following entities are generally required to file a BOI Report:

  • Corporations

  • Limited Liability Companies (LLCs)

  • Other entities created by a filing with a state or tribal authority

Why is the BOI Report Important?

The BOI Report enhances financial transparency and accountability by:

  • Reducing financial crime risks.

  • Protecting the integrity of the U.S. financial system.

  • Complying with international standards for combating money laundering and terrorism financing.

 

Penalties for Non-Compliance

Failure to file a BOI Report or providing false information can result in:

  • Civil Penalties: Up to $500 per day of non-compliance.

  • Criminal Penalties: Fines up to $10,000 and/or imprisonment for up to two years.

 

 

 

 

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