WHAT IS A
BOI REPORT?

A BOI report or Beneficial Owner Information Report is a report that each US company, unless exempt, must file with the US government.

Reporting companies have an ongoing duty to file updated BOI reports to report changes to information provided in earlier reports. If needed, reporting companies must file corrected BOI reports to correct errors discovered on previously filed BOI reports.

On September 29, 2022, FinCEN (US Financial Crimes Enforcement Network) issued a final rule to implement beneficial ownership information (BOI) reporting requirements.

The rule has the goal to improve the ability of the US government to protect the financial system from use by criminals, providing essential information to law enforcement and other agencies in order to prevent corrupt officials, terrorists, and other criminals from hiding money in the United States.

According to FinCEN, the ultimate goal of the beneficial ownership rule is to stop anonymous shell companies that facilitate money laundering in the United States.

The FinCEN beneficial ownership rule is different from the rule that went into effect in May 2018 that requires banks and financial institutions to collect information from their clients, including identifying the identity of beneficial owners of legal entity customers.