The Beneficial Ownership Information Report (BOIR) is a term that typically refers to a regulatory requirement related to disclosing information about the beneficial owners of legal entities. This disclosure is aimed at combating money laundering, terrorist financing, and other financial crimes by increasing transparency about who ultimately owns and controls companies.
In the United States, the Corporate Transparency Act (CTA) mandates the filing of a Beneficial Ownership Information Report (BOIR) with the Financial Crimes Enforcement Network (FinCEN). This report requires certain entities, such as corporations, limited liability companies (LLCs), and similar entities, to disclose information about their beneficial owners to FinCEN.
Here are key points related to the BOIR filing under the Corporate Transparency Act:
- Entities Covered: Most corporations, LLCs, and similar entities are required to report beneficial ownership information.
- Beneficial Owners: A beneficial owner is an individual who directly or indirectly owns or controls 25% or more of the ownership interests in the entity or exercises substantial control over the entity.
- Information Required: The BOIR filing requires disclosing identifying information about each beneficial owner, including their full legal name, date of birth, current residential or business address, and a unique identifying number from an acceptable identification document.
- Submission and Compliance: The requirements and timeline for BOIR filing are specified by FinCEN. Entities must submit the information electronically through FinCEN’s secure portal, and non-compliance may result in penalties.
- Purpose: The BOIR filing aims to enhance transparency in corporate ownership to prevent the misuse of entities for illicit purposes, such as money laundering and terrorism financing.
For entities subject to these regulations, it’s crucial to understand and comply with the BOIR filing requirements to avoid penalties and ensure regulatory compliance.
Entities seeking BOIR filing services typically engage with specialized firms or consultants with expertise in regulatory compliance and financial reporting. These services are designed to ensure accurate and timely compliance with legal obligations while minimizing the administrative burden on the entity. If you are required to file a BOIR or have questions about the process, consulting with professionals experienced in regulatory compliance is recommended.
