Resources to help you navigate the changing regulatory landscape

Lady working on lap top.

FinCEN Rule to Extend Business BOI Reporting Period to 90 Days

The Financial Crimes Enforcement Network (FinCEN) has extended the deadline for certain legal entities to report their beneficial ownership information (BOI) to the agency from 30 days to 90 days. The BOI Reporting Rule is scheduled to go into effect January 1, 2024.

The Corporate Transparency Act of 2020 requires legal entities to report their BOI to FinCEN.  The agency will hold this information in a database that will be accessible to appropriate parties, including credit unions complying with their Member Due Diligence requirements.  Legal entities created, or registering to do business in your state, between January 1, 2024 and December 31, 2024 will have 90 days to report their BOI to FinCEN. Legal entities created, or registered to do business in your state, before January 1, 2024 will have until January 1, 2025 to report their BOI to FinCEN.

Legal entities created or registered to do business in your state on or after January 1, 2025 will have 30 days to report their BOI to FinCEN’s database.

We are still waiting for the BOI Access Rule to be finalized. The Access Rule will describe how credit unions, law enforcement and other appropriate parties will access the BOI from FinCEN’s database. The Access Rule is expected to be effective January 1, 2024, to correspond with the new BOI database.

As the clock ticks closer to this effective date, I continually hear from credit unions that are concerned with whether they will have enough time to implement the final rule by January 1st.  Based on the proposal, there will be several security and confidentiality protocols that must be in place. While reporting businesses will be mandated to report by certain dates, credit unions should have the option to use the database on their own timeline.

Keeping in mind that new technology often has glitches and delays, if the database does goes live as planned on January 1st,  it will be empty until information begins to trickle in from businesses required to report. With new businesses now having 90 days to report, their information won’t be expected to be entered into the database until at least April. And for legal entities created before January 1, 2024 – their information might not be entered into the database until the final months of 2024. So, credit unions will likely have several months before the BOI database is a feasible option for obtaining BOI from business members.

Additionally, FinCEN may decide to phase in the Access Rule, such that certain parties, like law enforcement, would have Access before financial institutions.

As always, the devil will be in the detail of the final rule. Until then, I am just providing possible options. In the meantime, you will continue to identify and verify Beneficial Ownership Information of your business accounts in the same way you have since 2018.

For more information, view FinCEN’s news release or its notice published in the Federal Register.

Access the ‘Compliance Hotline’
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:

Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!

Additionally, other League-member compliance resources include:

  • ViClarity
  • CU PolicyPro
  • ComplySight
  • InfoSight
  • CU Store
  • Record Retention Guide
  • GRC Technology Solutions

For more information, email Lisa Quaranta.

Powered by ViClarity, a California and Nevada Credit Union Leagues company.

Become an Industry Supporter

Get membership information

Please contact me about compliance

Contact me about Credit Union Solutions

Education & Professional Development