The introduction of beneficial ownership reporting requirements by the Financial Crimes Enforcement Network (FinCEN) marks a significant shift in how businesses must operate and report in the United States. This article breaks down the essential components of this regulation, its impact, and how Regio Management can assist your business in navigating and complying with these new rules.

What is Beneficial Ownership Reporting (BOI)?

Beneficial ownership reporting arises as part of the Corporate Transparency Act (CTA), included in the Anti-Money Laundering Act of 2020. FinCEN, a bureau of the

U.S. Department of the Treasury, has established final reporting requirements that took effect on January 1, 2024. This reporting mandates that business owners provide personally identifiable information of those who exert substantial control or hold a significant ownership interest in the company.

Businesses Affected by the Regulation

The beneficial ownership reporting requirements apply to:

• Domestic Companies: Corporations, LLCs, and other entities formed by registration with a secretary of state or similar office under the laws of a state or tribal
• Foreign Companies: Entities formed under foreign laws but registered to do business in any S. state or tribal jurisdiction.

The rule excludes domestic sole proprietorships and certain regulated entities such as banks, credit unions, and insurance companies.

Importance of Beneficial Ownership Reporting (BOI)

The purpose of this reporting is to combat the creation of anonymous shell companies and prevent crimes such as money laundering. By requiring entities to report their beneficial owners to FinCEN, the CTA aims to protect the U.S. financial system and enhance corporate transparency.

Consequences of Non-Compliance

Companies that fail to meet the reporting requirements may face severe penalties, including fines of up to $10,000 and, in cases of willful non-compliance, prison sentences of up to two years. These sanctions emphasize the importance of adhering to the new regulations.

How Should My Business Proceed?

Businesses should start by educating themselves on the obligations and filing requirements under the CTA. It is recommended to:

• Review corporate structure and beneficial
• Prepare and organize the necessary
• Consult legal advisors to ensure full

Support from Regio Management

At Regio Management, we are ready to help your business comply with these new requirements. We offer services including:

• Advising on the classification of beneficial
• Assisting in the preparation and submission of the required
• Ongoing consulting to ensure compliance with evolving

Executive Summary

1. Definition and Origin: Beneficial ownership reporting is a FinCEN requirement under the CTA to enhance corporate transparency and combat money
2. Affected Businesses: Applies to most business entities in the S., except domestic sole proprietorships and specific regulated entities.
3. Purpose: Ensure that information about the true owners of companies is available to
4. Penalties for Non-Compliance: Include hefty fines and potential prison
5. Support from Regio Management: We provide comprehensive assistance to help your business navigate and comply with these new

Ensure your business is prepared to meet these important regulatory changes with the support of Regio Management. We are here to guide you through each step of the process and ensure your business maintains its operational integrity and legal compliance.