Why You Should Get a FinCEN Identifier

Question: Should I get a FinCEN Identifier?

Answer: It depends. If you do not own 25% or more of a reporting company and do not control a reporting company you do not need a FinCEN identifier. However, if you own 25% or more of more than one reporting company or have substantial control of more than one reporting company I recommend that you get a FinCEN identifier because it will make it very simple for you to give your personal information to reporting companies.

Instead of giving a [. . .]

What is a FinCEN Identifier?

Question: What is a FinCEN identifier?

Answer: A FinCEN identifier is a code issued by FinCEN to a person or an entity that can be used to identify the person or entity in a FinCEN report. When a FinCEN identifier is used in a FinCEN report that required information about the beneficial owner or applicant does not have to be included in the report.

What if a Trust Owns a Reporting Company?

Question: If a Trust owns 25% or more of a reporting company is the trustee a beneficial owner of the reporting company?

Answer: Yes. A beneficial owner of a reporting company is any individual who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise exercises substantial control over the entity or owns or controls not less than 25 percent of the ownership interests of the reporting company.

The trustee of a trust is the legal owner of the trust’s assets. Normally the trustee’s [. . .]

FinCEN’s Corporate Ownership Rules Stir Debate From Banking, Small Business Groups

A February 9, 2022, article in the Wall St. Journal discusses the Corporate Transparency Act (CTA). Here are some statements from the article:

“FinCEN in December released what it said were the first of three sets of proposed rules governing how the database will work. . . . FinCEN on Tuesday said it received more than 230 comments in response to its proposed rules. . . . stakeholders, however, including organizations representing financial institutions and small businesses, expressed [. . .]

FinCEN Statement Regarding Beneficial Ownership Information Reporting and Next Steps

On February 8, 2022, FinCEN published a press release about beneficial owners. The press release says:

The Financial Crimes Enforcement Network (FinCEN) notes that the comment period to the December 8, 2021 notice of proposed rulemaking (NPRM) requiring the reporting of beneficial ownership information (BOI) (the “Reporting NPRM”) has closed. FinCEN received over 230 comments.

The Reporting NPRM is the first in a series of rulemakings that FinCEN will issue to implement the Corporate Transparency Act (CTA). The next step in the CTA rulemaking series will be [. . .]

Is Your Company Exempt from the Corporate Transparency Act?

The Corporate Transparency Act provides that all reporting companies must file a report with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury or be subject to a $500/day fine. If you are an owner of a limited liability company (LLC), a professional limited liability company (PLLC) a corporation, a professional corporation, a limited partnership (LP), a limited liability partnership (LLP), a limited liability limited partnership (LLLP) you need to know if your company must file the FinCEN report or if it is exempt.

To [. . .]

Fact Sheet: Beneficial Ownership Information Reporting Notice of Proposed Rulemaking (NPRM)

On December 7, 2021, FinCEN published a fact sheet about reporting companies’ beneficial owners. The fact sheet says:

Millions of corporations, limited liability companies, and other entities are formed within the United States each year. While such entities play an essential and legitimate role in the U.S. and global economies, they can also be used to facilitate illicit activity, such as corruption, and enable those who threaten U.S. national security to access and transact in the U.S. economy. Few jurisdictions in the United States require legal [. . .]

FinCEN Issues Proposed Rule for Beneficial Ownership Reporting to Counter Illicit Finance and Increase Transparency

On December 7, 2021, FinCEN issued the following press release about the Corporate Transparency Act:

WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) today issued a Notice of Proposed Rulemaking (NPRM) to implement the beneficial ownership information reporting provisions of the Corporate Transparency Act (CTA). The proposed rule is designed to protect the U.S. financial system from illicit use and impede malign actors from abusing legal entities, like shell companies, to conceal proceeds of corrupt and criminal acts. Such abuses undermine U.S. national security, economic fairness, and [. . .]

FinCEN’s Advance Notice of Proposed CTA Rulemaking

The Financial Crimes Enforcement Network (FinCEN) April 5, 2021 Advance Notice of Proposed Rulemaking (ANPRM). FinCEN is soliciting public comments on a wide range of questions related to the implementation of the beneficial ownership information reporting provisions of the Corporate Transparency Act (CTA).

FinCEN Launches Regulatory Process for New Beneficial Ownership Reporting Requirement

FinCEN’s April 1, 2021 (not an April fools joke) about the Corporate Transparency Act.

WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) today issued an Advance Notice of Proposed Rulemaking (ANPRM) to solicit public comment on a wide range of questions related to the implementation of the beneficial ownership information reporting provisions of the Corporate Transparency Act (CTA).

This ANPRM is the first in a series of regulatory actions that FinCEN will undertake to implement the CTA, which is included within the Anti-Money Laundering Act of [. . .]

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