The Financial Crimes Enforcement Network (FinCEN) has instituted the Beneficial Ownership Information Reporting (BOI) rule effective January 1, 2024.  While RIAs that are registered with the Securities and Exchange Commission (SEC) are exempt from this requirement, state registered RIAs are not.  

A beneficial owner includes any individual who, directly or indirectly: (1) exercises substantial control over a reporting company; and/or (2) owns or controls at least 25 percent of the ownership interests of a reporting company.  Business owners are encouraged to consult with their legal representation to review their ownership structure and who would be considered as owner or as having control.

FinCEN has put together a comprehensive FAQ on the specifics of the requirements, as well as a Small Entity Compliance Guide, to help business owners understand their obligations under the new rules, and on how to file using the BOI E-Filing System. You will also be able to create a FinCEN ID to facilitate the reporting process. BOI E-FILING (fincen.gov)

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Resources used:

Beneficial Ownership Information Reporting Rule Fact Sheet | FinCEN.gov

Beneficial Ownership Information Reporting | FinCEN.gov

BOI Small Compliance Guide v1.1 (fincen.gov)

BOI E-FILING (fincen.gov)

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Key Terms: BOI, FinCEN, RIA, State RIA, SEC RIA, Beneficial Ownership

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