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Accounting & Bookkeeping: Beneficial Ownership

There are some new requirements relating to beneficial owner information. Beneficial owners are people who own or control interest in a legal entity, such as a company or a trust. Though these new requirements are relatively simple, they will affect a lot of businesses.

As part of the Financial Crimes Enforcement Network, entities will need to report their beneficial owners in an effort to curb money laundering. There are 23 exceptions to this new filing requirement, including publicly traded companies and those who meet and income threshold.

If you already exist as a company, you will be required to file no later than January 1st, 2025. New companies created after December 31st, 2023 will have only 30 days to file.

Failure to meet these new regulations can result in stiff penalties. If you don’t file on time, civil penalties can be up to $500 per day for non-compliance. Criminal penalties can include up to a $10,000 fine and a maximum of two years in jail.

A Certified Public Accountant (CPA) can help you with filing these. They are ready to help make sure their meet these deadlines and file the proper information, which can sometimes be a little bit confusing.

To learn more, visit past tips on the BE&O Page!