Policy Briefing — FinCEN Beneficial Ownership Reporting Final Rule

Executive briefing: On September 30, 2022, the U.S. Financial Crimes Enforcement Network (FinCEN) finalized its Beneficial Ownership Information Reporting Requirements rule. The regulation compels most corporations, LLCs, and similar entities to report beneficial ownership and company applicant data beginning January 1, 2024.

Immediate compliance priorities

Entity scoping. Identify legal entities within the organization that qualify as reporting companies and map available exemptions.
Data collection. Establish processes to capture beneficial owner and company applicant information, including document verification and change monitoring.
System readiness. Prepare to submit filings through FinCEN's beneficial ownership IT system and document governance for amendments within 30 days of changes.

Control alignment

Governance. Assign responsibility to compliance or legal functions for filing oversight, recordkeeping, and training.
Data protection. Implement safeguards for sensitive identification documents maintained for reporting purposes.
Policy updates. Update AML, entity management, and onboarding procedures to integrate beneficial ownership verification.

Enablement moves

Coordinate with corporate secretaries and tax teams to align entity data repositories with reporting requirements.
Educate senior management and board members on potential civil and criminal penalties for non-compliance.
Plan for ongoing updates, including tracking FinCEN small business compliance guides and FAQs.

Sources

Zeph Tech equips U.S. enterprises to meet CTA beneficial ownership reporting obligations with entity inventories, owner outreach, and filing automation.