FinCEN Finalizes Beneficial Ownership Reporting Deadline Extension for New Companies

The Treasury Department’s Financial Crimes Enforcement Network issued a final rule this week to delay the deadline for newly created companies to comply with its new beneficial ownership information reporting requirements (see 2308160023). The change, proposed in September, extends that deadline from 30 days to 90 days after the company is created, and it applies only to companies created or registered on or after Jan. 1, 2024, and before Jan. 1, 2025. FinCEN said the extension will give those entities more time to understand the new reporting obligations, which aims to provide more information to law enforcement and national security agencies as they look to prevent sanctioned parties and others from hiding money or property in the U.S. The rule takes effect Jan. 1.

The agency said most of the 50 public comments on the proposed rule supported the change, while others suggested a longer 120-day deadline or for FinCEN to apply the 90-day deadline for all companies. FinCEN said it received one “critical” comment that said the extension “did not offer sufficient relief to reporting companies.”