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Beneficial Ownership Information Reporting Final Rule Explained
November 17, 2022
In January 2021, the Corporate Transparency Act (CTA) was passed into law as a part of the larger Defense Authorization Act for Fiscal Year 2021. The CTA requires certain domestic and foreign held business entities to report information to the Department of Treasury about the company and its individual owners and managers. The required reporting focuses on personal information about company owners and key management personnel. BOI is intended to assist the Financial Crimes Enforcement Network (FinCEN) division of Treasury to identify shell companies used for potentially criminal activities. On September 30, 2022, Treasury released its final regulation and guidance for BOI reporting. The Regulation is effective as of January 1, 2024.