Preparing for Major Changes in FinCEN Beneficial Ownership Reporting
An estimated 32.6 million domestic and foreign companies will soon be required to report information about their beneficial owners to the U.S. Treasury. This White Paper describes the new requirements and the steps companies need to consider taking prior to the first reporting deadlines to comply with the new requirements.
The reporting requirements take effect January 1, 2024. All non-exempt domestic reporting companies created on or after January 1, 2024, will have 30 days from notification of their formation to file an initial beneficial ownership report with the U.S. Treasury Department's Financial Crimes Enforcement Network ("FinCEN"). Foreign reporting companies formed on or after January 1, 2024, will have 30 days from their initial qualification to do business in a U.S. jurisdiction to file. Domestic or foreign reporting companies in existence prior to January 1, 2024, will have until January 1, 2025, to file an initial beneficial ownership report.
While FinCEN is expected to issue additional interpretative guidance on the reporting procedures, including the format of the reporting form and final rules on access to reported information, companies can take specific steps now to ensure they are ready to timely comply with the new requirements.
Jones Day publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our “Contact Us” form, which can be found on our website at www.jonesday.com. The mailing of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.