The Financial Crimes Enforcement Network (FinCEN) has issued a Notice of Proposed Rulemaking (NPRM) on September 27th, 2023, proposing to extend the deadline for companies created or registered in 2024 to file the initial Beneficial Ownership Information (BOI) reports. Original information was published as part of the American Bar Association’s Business Law Today in October 2023 and can be found via
McGlinchey Stafford’s legal document.
Filing BOI reports is a necessary step for newly-formed companies to prove their legitimacy and to demonstrate their commitment to maintaining an environment free from financial crimes such as money laundering and fraud. Legally compliant companies are required to disclose beneficial owners who either own 25% or more of the company or who control the company’s operations.
The proposed extension from FinCEN indicates a recognition of the challenges that companies face in collating and submitting these details, particularly for those that have been in operation or registered recently. Especially in these unprecedented times, where businesses have had to adapt at breakneck speeds while also keeping up with constantly-evolving financial regulations.
Details about the length of the proposed extension or the rationale behind it have not been disclosed yet. Legal professionals, corporations, and law firms should keep an eye out for further updates on this matter to ensure they can meet any new deadlines and continue operating within the law.