Effective January 1, 2024, Beneficial Ownership Information Reporting (BOIR) is a new regulation that requires companies operating in the US to provide information about their beneficial owners.
What is a beneficial owner?
Beneficial owner refers to the natural person or persons who have control or ownership of a company. These persons may be shareholders in the company or have control over the company.
What is the purpose of Beneficial Ownership Information Reporting (BOIR)?
The purpose of Beneficial Ownership Information Reporting (BOIR) is to ensure that
Combating money laundering and other financial crimes: By making it harder for criminals to conceal their identities and activities, BOIR can help prevent them from using the US financial system for illegal purposes.
Increasing transparency in the corporate world: BOIR can make it easier for law enforcement, journalists and the public to understand who controls companies.
Protecting national security: BOIR can help protect national security by making it more difficult for foreign adversaries to gain control of US companies.
Who are the companies subject to Beneficial Ownership Information Reporting (BOIR)?
Companies subject to Beneficial Ownership Information Reporting (BOIR) are:
Companies incorporated in the USA
Foreign companies doing business in the US
What is the information required to be reported under Beneficial Ownership Information Reporting (BOIR)?
The information required to be reported under Beneficial Ownership Information Reporting (BOIR) is as follows:
- Beneficial owners' name, date of birth, address, ID number or passport number and percentage of ownership or control
- Name, address and type of company
How to file a Beneficial Ownership Information Reporting (BOIR) statement?
- The BOIR statement can be filed electronically through FinCEN's online filing system.
What happens if there is a delay or omission in filing the Beneficial Ownership Information Reporting (BOIR)?
- Companies may be fined for delays or omissions in filing the Beneficial Ownership Information Reporting (BOIR).
Tips for companies subject to Beneficial Ownership Information Reporting (BOIR)
You can follow the tips below to file the Beneficial Ownership Information Reporting (BOIR) on time and in full:
Correctly identify beneficial owners. To correctly identify beneficial owners, you need to carefully examine the company's shareholders and the people who have control over the company.
Enter beneficial owners' information completely and accurately. Follow FinCEN's guidelines to enter complete and accurate beneficial owners' information.
Get expert support. Filling in the BOIR declaration can be a complex process. Therefore, it may be useful to get the support of an expert.
BOIR is an important regulation for companies operating in the US. If you are a company subject to BOIR, get a free consultation from Sky Accounting by taking the necessary steps to file the declaration in a timely and complete manner
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Frequently Asked Questions
- Companies incorporated in the USA
- Foreign companies doing business in the US
- Combating money laundering and other financial crimes: By making it harder for criminals to conceal their identities and activities, BOIR can help prevent them from using the US financial system for illegal purposes.
- Increasing transparency in the corporate world: BOIR can make it easier for law enforcement, journalists and the public to understand who controls companies.
- Protecting national security: BOIR can help protect national security by making it more difficult for foreign adversaries to gain control of US companies.
In case of delay or failure to submit the BOIR declaration, companies may be fined.
The BOIR statement can be filed electronically through FinCEN's online filing system.
