Beneficial Ownership Information requirements enter into force on 1 January 2024
01 Jan 2024
Starting from 1 January 2024, companies operating in the United States will be required to provide information on their beneficial owners to the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury. The obligation is provided for in the Corporate Transparency Act adopted by the US Congress in 2021. As a rule, existing companies will have until 1 January 2025 to provide required information, while newly created entities shall report their BOI within 30 days. Although the reporting requirements relate to all corporations, limited liability companies and any other companies created by making fillings with a secretary of state or a similar office, the Act envisages 23 specific types of entities exempts from the obligation. Those include governmental authorities, banks and credit unions, insurance companies, brokers and dealers in securities, or tax-exempt entities.
Additionally, the Act defines a beneficial owner of a company as any individual, who directly or indirectly, exercises substantial control over a reporting company or owns or controls at least 25% of the ownership interests.
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Entry and establishment (Ownership and control)
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