Under proposed regulations just released by FinCen, new entities formed in 2024 will now have 90 days to file their initial beneficial ownership report with FinCen rather than the 30 days contained in current regulations.
Many legislators and trade and professional associations have been advocating for the new ownership reporting requirements to be postponed for at least another year to provide more time for outreach and education. Rather than delaying implementation for an additional year, FinCen will allow an additional two months for new entities formed in 2024 to “understand the new reporting obligation and collect the necessary information to complete their filings.” The current 30-day period to file an initial report will continue to apply to entities formed after 2024.
FinCen also indicated that it will be establishing a contact center prior to January 1, 2024, to field questions about the new reporting requirements from new entities and other stakeholders.
The proposed regulations are available at:
Sign up for Spidell’s upcoming live webinar, New Mandatory Ownership Reporting Requirements, to make sure you and your clients are prepared for these new requirements in order to avoid the substantial noncompliance penalties that may be imposed. Click here and register today.