Compliance/Enforcement

Understanding Your Obligations:

• Reporting Requirements: Reporting companies must diligently report, update, and correct beneficial ownership information as required by FinCEN. Understanding and adhering to these obligations is crucial for maintaining compliance.
• Correction Window: If errors or omissions are corrected within 90 days of the original reporting deadline, companies may avoid penalties, emphasizing the importance of prompt action when discrepancies are identified.

Penalties for Non-Compliance

• Civil and Criminal Penalties: Individuals who willfully fail to comply with BOI reporting requirements could face severe repercussions, including daily civil penalties of up to $500 and criminal penalties, including fines of up to $10,000 and up to two years imprisonment.
• Liability: Liability extends to individuals and entities, including those providing false information or failing to report accurately. This includes individuals filing on behalf of a company and beneficial owners or company applicants who withhold necessary information.

Ensuring Accuracy and Completeness

• Reporting Company Responsibility: The reporting company's responsible for accurately identifying and reporting information on beneficial owners and company applicants. This includes verifying information provided by others to ensure the accuracy of reports submitted to FinCEN.
• Engagement and Verification: Companies are encouraged to actively engage with their beneficial owners and company applicants to gather and verify all required information. This proactive approach helps ensure that reports are complete and accurate, reducing the risk of non-compliance.