On 11/15/24, FinCEN updated two Beneficial Ownership Information Access FAQs. The theme of the 11/15/24 update is Beneficial Ownership Access in accordance with the Corporate Transparency Act. FinCEN had previously update the its FAQ Section on 4/18/24 when they added a new section titled “Access to BOI Information”. This was a new section that addressed the phased approach from FinCEN to providing access to BOI – beneficial ownership information. Note that the Corporate Transparency Act mandates that a reporting company submit details regarding the ultimate beneficial owners of the company to FinCEN. Be aware that the deadline for entities to complete this filing is December 31, 2024.
Below are the extracts from the FinCEN Beneficial Ownership Information Access FAQs released on 11/15/24:
When will authorized recipients have access to beneficial ownership information? FinCEN is taking a phased approach to providing access to beneficial ownership information (BOI).
- The first phase began in the spring of 2024 with a pilot program for a handful of Federal agency users.
- The second phase began in the late summer of 2024 with the opportunity to extend extension of access to Treasury offices and other Federal agencies engaged in law enforcement, national security, and intelligence activities that already have memoranda of understanding (MOU) for access to Bank Secrecy Act (BSA) information.
- The third phase, expected to begin in the fall of 2024, will extend the opportunity to request access to additional Federal agencies engaged in law enforcement, national security, and intelligence activities, as well as to State, local, and Tribal law enforcement partners.
- The fourth phase, expected to begin in the winter of 2024, will extend the opportunity to request access to intermediary Federal agencies in connection with foreign government requests.
- The fifth phase, expected to begin in the spring of 2025, will extend the opportunity to request access to financial institutions subject to customer due diligence requirements under applicable law and their supervisors. FinCEN is currently accepting requests for access to BOI in the second phase.
How can my Federal agency request beneficial ownership information (BOI) from FinCEN?
- In order to curb illicit finance, the Corporate Transparency Act authorizes FinCEN to disclose BOI to Federal agencies engaged in national security, intelligence, or law enforcement activities, as well as Federal regulatory agencies that supervise financial institutions for compliance with customer due diligence requirements.
- Before any Federal agency may receive access to BOI from FinCEN, it needs to first request access and enter into a memorandum of understanding (MOU) with FinCEN that describes how it will protect the security and confidentiality of the information.
- Additional information about making an agency request and entering into such a memorandum will be available when your Federal agency becomes eligible to obtain access to beneficial ownership information under the phased implementation timeline. Federal agencies with access to BSA information can request access to BOI through their agency coordinator. In the meantime, we encourage any Federal agency interested in accessing BOI to review the Beneficial Ownership Information Access and Safeguards Rule and become familiar with the rule’s requirements for accessing BOI.
The deadline is fast approaching
Entities that were formed before 1/1/24 have the deadline to file an initial BOI report of 12/31/24. Those who intentionally neglect to meet the BOI reporting requirements by the 12/31/24 deadline could face both civil and criminal penalties.
Are you ready to file your report?
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