Beneficial Ownership Information Access: What You Need to Know

FinCEN’s Final Rule on Beneficial Ownership Information Access: What You Need to Know

The Financial Crimes Enforcement Network (FinCEN) has issued a crucial final rule implementing the access and safeguard provisions of the Corporate Transparency Act (CTA). This rule, known as the “Access Rule,” outlines how beneficial ownership information (BOI) can be disclosed to authorized recipients and the measures required to protect this sensitive data.

Key Points of the Access Rule

Authorized Recipients

The Access Rule specifies six categories of authorized BOI recipients:

1. U.S. Federal agencies engaged in national security, intelligence, or law enforcement
2. U.S. State, local, and Tribal law enforcement agencies
3. Foreign law enforcement agencies and authorities
4. Financial institutions for customer due diligence compliance
5. Federal functional regulators and supervisory agencies
6. U.S. Department of Treasury officers and employees

Security and Confidentiality Requirements

Strict security protocols are mandated for all authorized recipients:

• Domestic agencies must establish procedures to protect BOI confidentiality
• Financial institutions must implement safeguards similar to those used for customers’ nonpublic personal information
• Foreign requesters must comply with international treaty requirements or establish their own security standards

Re-Disclosure Restrictions

BOI re-disclosure is generally prohibited, with limited exceptions for specific circumstances within authorized entities.

Key Deadlines for Corporate Transparency Act Compliance

The Corporate Transparency Act (CTA) introduces crucial reporting requirements for businesses. Here are the essential deadlines you need to know:

For Existing Companies

• January 1, 2025: Deadline for companies formed or registered before January 1, 2024, to file their initial Beneficial Ownership Information (BOI) reports.

For New Companies

• 90-day window: Companies formed or registered between January 1, 2024, and December 31, 2024, must file within 90 days of creation or registration.
• 30-day window: Starting January 1, 2025, new companies must file within 30 days of formation or registration.

Updating Information

• 30-day update requirement: Any changes to previously reported information must be filed within 30 days of the change.

Importance of Timely Compliance

Failing to meet these deadlines can result in severe penalties:

• Civil penalties of up to $500 per day
• Criminal penalties including fines up to $10,000
• Potential imprisonment for up to two years

Next Steps for Businesses

1. Determine if your company is a “reporting company” under the CTA
2. Identify beneficial owners and gather required information
3. Prepare for filing well before the deadline
4. Establish procedures for ongoing compliance and updates

Don’t risk non-compliance. The Law Office of Barry E. Janay, P.C. offers free video consultations to help you navigate these new requirements and ensure your business meets all CTA obligations. Contact us today to schedule your consultation and protect your company from potential penalties.

Free Video Consultation

At The Law Office of Barry E. Janay, P.C., we understand the complexities of these new regulations. To help you navigate these changes and ensure your business’s compliance, we are offering a free video consultation. Our experienced team can provide personalized guidance on how these rules affect your organization and the steps you need to take.Don’t risk non-compliance. Schedule your free video consultation today and take proactive steps to protect your business.For more detailed information on the Access Rule, visit the official FinCEN fact sheet.

Barry E. Janay

Associate Attorney

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