Required Continuous Monitoring

from FinCEN’s “BOI Small Entity Compliance Guide” p. 45

If there is any change to the required information about your company or its beneficial owners in a BOI report that your company filed, your company must file an updated BOI report no later than 30 days after the date on which the change occurred. The same 30-day timeline applies to changes in information submitted by an individual in order to obtain a FinCEN identifier. A reporting company is not required to file an updated report for any changes to previously reported personal information about a company applicant.

Possible civil and criminal penalties include:

  • Any person who fails to comply with the registration requirements may be liable for a civil penalty of up to $591 per day for each violation (may be adjusted with inflation)
  • A criminal fine of up to $10,000 and/or imprisonment for up to two years may be imposed.

Sweeping Reach

Your Beneficial Ownership Information Report is available not only to federal government agencies, but also to state, local, and foreign agencies. Compliance is important for the protection of you and your officers. 

Scale Increases Risk for Non-Compliance

with possible civil and criminal penalties.

The new law requires filing from each reporting company with information on beneficial owners, company applicants, and the reporting company itself. As a multi-entity owner, this leaves more room for error and could lead to major penalties for you and your officers.

Filing

Your initial filing for each company is dependent on your date of formation.

  • Formed prior to 2024, you must file before December 31, 2024.
  • Formed in 2024, you must file within 90 days of formation.

In addition, you must file an updated report within 30 days of any information changes to any of your reporting companies or beneficial owners.

Ongoing Monitoring

By law, you must implement a strategy or plan for continuous monitoring of your reporting companies and their owners. Monitoring includes checking with your owners often enough to file any changes or updates to their existing information within 30 days.

Managing these requirements with one reporting company isn’t cumbersome. But this becomes a burden as the number of reporting companies increases.