What the New FinCEN Reporting Requirements Mean For MSPs>
Channel E2E – Sharon Florentine
This summary discusses the implementation of the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting provisions by the Financial Crimes Enforcement Network (FinCEN)
Key points include:
1) The rule aims to prevent illicit actors from using shell companies to launder money through the U.S.
2) Companies with fewer than 20 full-time employees or under $5 million in gross receipts/sales must submit BOI by January 1, 2025.
3) Larger companies and certain regulated entities are exempt from reporting.
4) Many MSPs and MSSPs may be subject to these reporting requirements.
5) The information required includes name, birthdate, address, and identification details of beneficial owners.
6) Reporting companies created after January 1, 2024, have 30 days to file initial reports.
7) Changes to information must be reported within 30 days.
8) Non-compliance results in fines of $500 per day.
9) FinCEN estimates the cost of compliance at around $85 for companies with simple structures.
10) Companies can file directly with FinCEN or use a registered agent service for assistance
The article emphasizes the importance of awareness and compliance for small businesses and provides resources for more information on the FinCEN website.
Link: https://www.channele2e.com/feature/what-the-new-fincen-reporting-requirements-mean-for-msps