The Financial Crimes Enforcement Network (FinCEN) is a bureau of the United States Department of the Treasury that collects and analyzes information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes.  FinCEN is one of 164 financial intelligence units (FIUs) around the world that are responsible for sharing financial information with their counterparts in other countries to help combat financial crimes.

• Collecting and analyzing financial transaction data: FinCEN collects financial transaction data from a variety of sources, including banks, casinos, and money service businesses. This data is then analyzed to identify suspicious activity that may be indicative of money laundering or other financial crimes.
• Issuing regulations: FinCEN issues regulations that require financial institutions to report suspicious activity and to implement anti-money laundering programs.
• Sharing financial information with law enforcement: FinCEN shares financial information with law enforcement agencies to help them investigate and prosecute financial crimes.
• Providing training and technical assistance to FIUs: FinCEN provides training and technical assistance to FIUs in other countries to help them combat financial crimes.

FinCEN plays a critical role in protecting the United States financial system from illicit use. By collecting and analyzing financial transaction data, issuing regulations, sharing financial information with law enforcement, and providing training and technical assistance to FIUs, FinCEN helps to prevent and deter money laundering, terrorist financing, and other financial crimes.

A beneficial owner is an individual who exercises substantial control over a company or owns at least 25% of its ownership interest.

Most businesses that are created or registered to do business in the United States are required to file a BOI report. This includes business entities that are created by filing a document with the Secretary of State's office or a similar office in any state in the United States. There are some exemptions, such as for large businesses that are already subject to substantial regulation from the government. The following businesses are required to file a BOI report:

• Corporations (including S-Corps) | Limited Liability Companies (LLC);
• Other business entities that were created or registered to do business in the United States;

There are a number of EXEMPTIONS to the CTA, including:

• Large Businesses (at least 20 FULL-TIME employees | a physical U.S. Office | at least five million dollars in gross receipts from the previous year);
• Certain Governmetn Agencies | Financial Institutions | INACTIVE Entities;
• Entities already subject to significant regulation (e.g., banks, insurance companies);
• Subsidiaries of Exempt Entities | Legal Structures (Certain Trusts);

The deadline for filing a BOI report depends on when your business was formed or registered. If your business was formed or registered before January 1, 2024, you must file your report by January 1, 2025. If your business was formed or registered after January 1, 2024, you must file your report within 30 days.

It’s important to note that penalties for non-compliance can be severe, so timely filing is crucial.

The penalties for not complying with the CTA are as follows?

Businesses that fail to file a BOI report can be fined $500 per day, up to a maximum of $10,000. Businesses that intentionally fail to file a BOI report can be imprisoned for up to two years.

NOTE: There is ongoing litigation challenging the penalties.

The actual filing process with FinCEN may take A FEW MINUTES once you have all the necessary information. However, gathering the required information and completing the form can take longer, depending on the complexity of your business structure and the number of beneficial owners.

To streamline the process and ensure timely filing, consider using a professional service like TBD Coaching®. Schedule a consultation [tbdcoaching.net/boi-reporting-consult] with TBD Coaching® today to get your questions answered.

You can also reach us by emailing Ava Miller at [email protected]

There is NO DIRECT FEE CHARGED BY THE GOVERNMENT for filing a BOI report. However, businesses may incur costs associated with preparing and submitting the report, such as legal fees or accounting fees.

By utilizing our BOI Report Filing Service for just $49, you can save time and ensure accurate and timely filing.

Use this link to enroll in the BOI Report Filing Service today: tbdcoaching.net/boi-report-filing-service