Starting January 1st, 2024, the Financial Crimes Enforcement Network (FinCEN) will mandate that all businesses across various industries submit reports on beneficial ownership information (BOI). This initiative aims to combat money laundering and other illegal financial activities.

According to the CTA''s requirements, the following criteria defines the ownership interest:

1. Directly or indirectly owns/controls at least 25% of the reporting company.
2. Exercises substantial ownership and control of the company.

And the following criteria defines substantial control of the company:

1. Individuals with the power and/or authority to direct control or influence decision-making processes.
2. Senior advisors of the company.

All companies, whether domestic or foreign, must file a BOI report. A reporting company is defined as any corporation, limited liability company (LLC), or any other business registered with the SEC in any state, or formed in a foreign country but registered in the United States.

There are 23 different types of reporting companies exempt from filing their BOI. The following list includes the most common types of exempt companies:

1. Large companies: Businesses employing a minimum of 20 full-time employees, earnings $5 million in annual revenues, and have a physical presence in the United States.
2. Companies registered with the SEC.
3. Banks, bank holding companies, loan holding companies, and credit unions.
4. Insurance firms
5. Registered Commodity Exchange Act (CEA) utilities
6. Investment advisors
7. Accounting firms
8. Dormant or inactive companies
9. Tax-exempt companies

A BOI report contains the following information:

1. Every beneficiary's full name
2. Date of birth
3. Residential or business address
4. Passport or driver's license