Beneficial Ownership Information Reporting Goes Into Effect March 21, 2025

Last week, the U.S. District Court for the Eastern District of Texas lifted the nationwide injunction on the Beneficial Ownership Information reporting requirement. Small businesses have until March 21, 2025 to comply with the FinCEN reporting requirements. While credit unions do not need to do anything at this time, those with business members may wish to provide information on this requirement to help them avoid costly fines.  

The Beneficial Ownership Information (BOI) reporting requirements came out of the Corporate Transparency Act to increase knowledge to financial institutions and the federal government regarding the true owners and controlling members of nonpublic companies. FinCEN and the Department of the Treasury created a brochure explaining the filing process and ample digital resources that are available to business members on their website. Companies who do not comply may be subject to a civil penalty of $500 per day up to $10,000, and two years in federal prison.  

With the change in administration, many rules are currently in flux. FinCEN has asserted that they may update the deadline should they find it necessary for the implementation of the requirement. Additionally, there is a proposal in Congress that would extend the reporting deadline, but the outcome of the bills are uncertain at this time.