FinCEN Asks for Comments on Proposed Reporting Extension for New Entities

The Financial Crimes Enforcement Network (FinCEN) proposed extending the requirement for reporting beneficial ownership information from 30 to 90 days for entities formed or foreign entities newly registered in the U.S. on or after Jan. 1, 2024, and before Jan. 1, 2025. The proposed extension aims to give newly formed or registered entities additional time to understand their reporting obligations and collect the information necessary to complete the filing.

Under the current rule, entities formed or registered on or after Jan. 1, 2024, must file within 30 days of formation. The proposed amendment extends the 30-day period to 90 days for such entities, while entities formed or registered on or after Jan. 1, 2025, would still be required to submit their reports within 30 days of formation. FinCEN is accepting written comments on the proposed amendment. Interested parties should submit comments by Oct. 30 through any of the following methods:

• • Federal E-rulemaking portal – Follow the instructions for submitting comments and refer to Docket Number FINCEN–2023–0014 and the Office of Management and Budget (OMB) control number 1506–0076.
  • Mail – Send to Policy Division, Financial Crimes Enforcement Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN–2023–0014 and OMB control number 1506–0076.

FinCEN believes that extending the deadline from 30 to 90 days will increase the time available for new entities to understand and comply with the new regulatory obligations, provide these entities with additional time to obtain the information necessary to complete the beneficial ownership reports, and give them time to resolve questions that may arise in the process of completing their initial beneficial ownership reports.

In September, FinCEN released a Small Entity Compliance Guide to help businesses ensure they comply with the reporting requirements. A copy of the guide may be found here.

Please contact Hal West, Trevor Haynes or any member of Phelps' Business team if you have questions or need advice and guidance.