Starting in January 2024, all US companies large and small, must register their Beneficial Owners, individuals with significant interest in the company. This requirement comes from the Corporate Transparency Act, which aims to promote transparency and prevent adversarial or corrupt influence. This means someone within the company – identified as the “Company Applicant” – must research, compile, and correctly register with the US Department of the Treasury. The timeframe to do so varies from as long as one year, for already active companies, to as little as thirty (30) calendar days, for new companies.
What you'll need to do
- Designate a "Company Applicant" to research, compile, and register this information with the US Department of the Treasury. (https://www.fincen.gov/boi)
- Provide details like the company's name, address, Taxpayer Identification Number (TIN), and, for foreign reporting companies, the registration jurisdiction.
- Include comprehensive information for each Beneficial Owner: their name, birthdate, address, and identification documentation.
The importance of getting it right
Correctly reporting this data is crucial, as it's stored securely and can't be accessed by the public. The Treasury Department’s Financial Crimes division compiles this information to ensure US interests are not compromised by adversarial nations. If there are mistakes in this reporting procedure, correcting them can be complex, underscoring the need for accuracy from the start.
How Sourceree can help
Don't let this new requirement stress you out. Sourceree is here to help you navigate the Treasury's data demands efficiently and accurately. Our experience in tracking Beneficial Ownership and business data can make compliance easier – our, soon to be commercially released, HexMarq Software platform has been tracking Beneficial Ownership interests, business location data, and Supply Chaim information for years. Our intuitive network mapping tool quickly identifies and monitors Ownership Interests, putting the research at your fingertips.
