Many small businesses are now required to report information about the individuals that own or control them, due to a new law called the Corporate Transparency Act in effect as of January 1, 2024. This law requires reporting to the U.S. Treasury’s Financial Crimes Enforcement Network (“FinCEN”). The law is to make it harder for criminals to use shell companies or unclear ownership structures.

This reporting requirement is different from the beneficial ownership identification completed by the Bank at account opening.

Businesses required to report are referred to as “reporting companies”. Some businesses are exempt from reporting. More information is available from FinCEN’s page on Small Business Resources.

Reporting companies established before January 1, 2024 have until January 1, 2025 to report; those established in 2024 have 90 days following registration to report; and those established in 2025 or after have 30 days following registration to report.

Changes in ownership are to be reported within 30 days of the change.

Information above is subject to change by FinCEN. For questions on Corporate Transparency Act reporting, FinCEN has a contact form, or you may call them at 1-800-767-2825.

FinCEN also advises to beware of fraudulent attempts to solicit reporting information – emails with links to click on or letters with QR codes to scan are not from FinCEN, and recipients should avoid clicking on links or scanning the codes.