FinCEN Issues Notice to Financial Institution Customers on Beneficial Ownership Information Requirements

SUMMARY: FinCEN has issued a notice to customers of financial institutions regarding reporting beneficial ownership information. The Beneficial Ownership Information (BOI) reporting rule took effect January 1, 2024, and requires certain entities, to report to FinCEN, information about the individuals who ultimately own or control the entity.

This notice provides answers for financial institution customers about the separate requirements of financial institutions to also collect BOI from certain customers seeking to open accounts as part of Federal customer due diligence requirements.  The notice is intended to provide information to consumers about the reporting of BOI information and providing BOI to financial institutions.

The notice also provides a reference guide for customers. The charts in the guide compare the requirements for data collection of FinCEN’s requirements versus financial institutions.

Financial institutions are encouraged to provide this guide to customers who may be required to report BOI.

FinCEN Issues Notice to Financial Institution Customers on Beneficial Ownership Information Requirements

Today, the Financial Crimes Enforcement Network (FinCEN) issued a notice to customers of financial institutions about reporting beneficial ownership information. The Corporate Transparency Act requires certain entities, including many small businesses, to report to FinCEN information about the individuals who ultimately own or control them. A separate regulatory requirement currently requires many financial institutions to also collect beneficial ownership information from certain customers that seek to open accounts as part of Federal customer due diligence requirements. Today’s notice provides answers to key questions about: (1) reporting beneficial ownership information to FinCEN under the Corporate Transparency Act (https://www.fincen.gov/boi); and (2) providing beneficial ownership information to financial institutions in connection with Federal customer due diligence requirements. FinCEN encourages financial institutions to share this reference guide with customers that may be required to report beneficial ownership information. 

Notice to Customers – Beneficial Ownership Information Reference Guide: https://www.fincen.gov/sites/default/files/shared/BOI-Notice-to-Customers-508FINAL.pdf