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FinCEN’s Guidance for BOI Reporting by Business Members

If your credit union serves businesses, you have probably received questions about the new beneficial ownership information (BOI) reporting requirements going into effect January 1, 2024.  The 2020 Corporate Transparency Act made changes to how the Financial Crimes Enforcement Network (FinCEN) will collect beneficial ownership information from legal entities.

To fully implement the new CTA requirements is expected to take three rulemakings. The first, the Reporting Rule, is scheduled to take affect January 1, 2024. The Reporting Rule requires certain legal entities to file BOI reports with FinCEN. The rule describes who must file BOI reports, what information they must provide, and when they must file the reports. As promised, FinCEN has issued guidance to help legal entities better understand their reporting obligations going into effect January 1, 2024.

Reporting deadlines: 

  • Your business members that were created or registered to do business before January 1, 2024 will have one full year, until January 1, 2025, to file their initial BOI report.
  • Your business members that are created or registered to do business after January 1, 2024, will have only 30 days after receiving notice of their company’s creation or registration to file their initial BOI report.

FinCEN’s new Small Entity Compliance Guide / Beneficial Ownership Information Reporting Requirements addresses six key questions:

  • Does my company have to report its beneficia owners?
  • Who is a beneficial owner of my company?
  • Does my company have to report its company applicants?
  • What specific information does my company need to report?
  • When and how should my company file its initial report?
  • What if there are changes to or inaccuracies in reported information?

Additionally, the Guide provides interactive checklists, infographics, and other tools to assist businesses in complying with the BOI reporting rule.

What’s Next? We are currently waiting for the second BOI rule, the Access Rule, to be finalized. This rule will describe how credit unions will access the BOI from FinCEN’s database. The agency states that they are “working intensively” to finalize this rule to meet the January 1st implementation date. The agency isn’t expected to issue a proposal for the 3rd BOI rule, the Revision Rule, which will amend the existing BOI rule that credit unions are currently required to comply with, until sometime in 2024.

For Additional Information
Additional information:

Access the ‘Compliance Hotline’
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:

Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!

Additionally, other League-member compliance resources include: 

  • ViClarity
  • CU PolicyPro
  • ComplySight
  • InfoSight
  • CU Store
  • Record Retention Guide
  • GRC Technology Solutions 

For more information, email Lisa Quaranta.

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