Beneficial Ownership Information Reporting (BOI(R)

Beneficial Ownership Information Reporting (BOI(R)) is essential for enhancing financial transparency and regulatory compliance in the United States. This process mandates that financial institutions and certain businesses identify and report individuals who ultimately own or control the company, referred to as beneficial owners. The primary aim of this reporting requirement is to prevent money laundering, terrorist financing, and other financial crimes by providing authorities with accurate ownership data. Through stringent beneficial ownership reporting regulations, regulators seek to strengthen the integrity of the financial system, increase transparency, and build trust among stakeholders. Organizations must implement thorough due diligence procedures to accurately collect, maintain, and report beneficial ownership information, which contributes to creating a safer and more accountable financial environment. Starting January 1, 2024, reports will be accepted. Reporting companies formed or registered before this date will have until January 1, 2025, to submit their initial BOI reports. Companies created or registered between January 1, 2024, and January 1, 2025, are required to file their initial reports within 90 calendar days of receiving actual or public notice of their formation or registration. This 90-day period begins from the receipt of notice from the relevant authorities. Furthermore, companies established on or after January 1, 2025, must file their initial BOI reports within 30 calendar days of receiving such notice.