Bank of Tampa Overview Page - beneficial-ownership

Beneficial Ownership

In 2021, the U.S. government passed the Corporate Transparency Act (CTA), which requires certain entities, including many small businesses, to report information about the individuals who ultimately own or control them, also known as their “beneficial owners," to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

Businesses are required to report individuals owning 25% or more of the entity, individuals who exercise substantial control over the company, and the company applicant. The reporting deadline for businesses established before January 1, 2024, is January 1, 2025. Businesses established after January 1, 2024, have 90 days to report to FinCEN. There are penalties for failure to timely report:

  • Civil – $500/day, maximum $10,000;
  • Criminal – 2 years imprisonment; 
  • Senior company officers may be held personally liable for penalties.

While there are Beneficial Ownership requirements for reporting information to your bank, the requirements for reporting to the FinCEN are separate. This email is simply to notify you of upcoming regulation that could impact your business. 

For more information on Beneficial Ownership, please reference the Beneficial Ownership Reference Guide, provided by the Financial Crimes Enforcement Network (FinCEN) or visit their website: fincen.gov/boi.

 

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