New Federal Mandate for Businesses

Our team at Michaelson Law would like to inform you of a new federal mandate issued by the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury that will require most companies to provide personal information for each beneficial owner. The purposes of the requirements, which become effective January 1, 2024, and demand compliance within that calendar year, are to assist with investigations surrounding money laundering, criminal activities, human trafficking, and tax evasion. 

Penalties for Noncompliance

A company that fails to submit the required report or a subsequent amendment by mandated deadlines could be subject to daily fines of $500 per day.  Willful failures and the intentional filing of inaccurate information have additionally been classified as a felony, punishable by up to two years in prison.

What Information is Needed?

The Beneficial Ownership Information Reporting Rule requires that companies report the personal information of individuals, including those who either have at least 25% of an ownership interest in a company or who exercise substantial control over the same. Information that must be reported to FinCEN includes the following: 

  • Full Legal Name
  • Date of Birth
  • Individual’s Home Address (No P.O. Boxes)
  • A photo AND the identifying number of either:
    • Driver’s license
    • State ID
    • Passport

Michaelson Law Will Keep You Updated

In the coming weeks and months, Michaelson Law will continue to provide information about developments that may impact you.  If you need help navigating these challenging new requirements or wish to dissolve any unnecessary entities before the additional obligations take effect, please contact Michaelson Law!

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