Introduction

If you own or manage a business, it’s essential to be aware of the FinCEN BOI reporting deadline. By January 1, 2025, certain businesses must submit Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN) to stay compliant. This new requirement ensures financial transparency and security. Read on to learn how you can keep your business compliant and avoid penalties.

What Is Beneficial Ownership Information (BOI)?

Beneficial Ownership Information is the personal information of individuals who own or control at least 25% of a business and individuals who have significant responsibility to control, manage or direct the business. FinCEN requires this information to ensure transparency and reduce the risks of money laundering and financial crimes. Collecting BOI helps law enforcement track and prevent financial misconduct.

Who Needs to Report BOI to FinCEN?

FinCEN’s BOI reporting requirement applies to most businesses, including corporations, limited liability companies (LLCs), and similar entities registered in the United States. However, certain entities, like banks and large operating companies, may be exempt from this requirement.

To check if your business must report BOI, visit the FinCEN website at FinCEN.gov/BOI.

Why Is BOI Required?

The BOI requirement supports financial transparency and the protection of the U.S. financial system from criminal activity. By reporting BOI, businesses contribute to a secure economic environment, helping to prevent fraud, money laundering, and financial misconduct.

What Information Should Be Reported?

When submitting BOI, businesses need to report:

• Full Name of each beneficial owner
• Date of Birth
• Residential or Business Address
• Identification Number (from a driver’s license or passport)

This data will help FinCEN maintain accurate records, allowing law enforcement to verify the legitimacy of business owners and reduce risks of fraud.

How to Submit BOI

To submit BOI information, business owners can access the FinCEN portal or consult with their financial advisors. Detailed steps for submission are available on the FinCEN BOI information page.

Important Deadline: January 1, 2025

The FinCEN BOI reporting deadline is January 1, 2025. Businesses that fail to meet this deadline may face penalties, including fines. Staying compliant by reporting early is key to avoiding any disruptions.

What Happens If BOI Is Not Reported?

Failing to report BOI by the deadline can result in penalties. Non-compliant businesses may incur fines, making timely reporting essential. Make sure your business is ready to meet FinCEN requirements.

Velocity Community Credit Union Is Here to Help

At Velocity Community Credit Union, we’re committed to helping our business members navigate compliance requirements like the BOI rule. If you have questions about the reporting process or need guidance, our team is here to support you.

Visit our branches or call us for assistance.

Conclusion

Submitting Beneficial Ownership Information is a crucial step for U.S. businesses. By reporting BOI by January 1, 2025, your business can stay compliant with FinCEN’s rules, avoid penalties, and contribute to a safer financial system. To learn more, check out the official FinCEN BOI page or reach out to us at Velocity Community Credit Union.