FINCen's BOIR Requirement and How REBLAW Can Help

The Financial Crimes Enforcement Network (FINCen) is a bureau of the United States Department of the Treasury that serves a vital role in safeguarding the financial system. Its primary mission is to combat financial crimes, including money laundering, terrorist financing, and other activities that can compromise national security and financial stability.

By analyzing data and coordinating with financial institutions, law enforcement agencies, and foreign financial intelligence units, FINCen helps prevent illicit activities from funding criminal enterprises, drug cartels, and terrorist organizations. FINCen’s work extends deeply into the financial sector, where it monitors suspicious transactions, enforces compliance, and maintains regulations that financial institutions and certain businesses must follow.

One of its specific enforcement actions includes the monitoring of high-value cash real estate transactions. In key markets with a high risk of money laundering, such as Las Vegas, New York, and Miami, FINCen requires reporting on all-cash real estate transactions over $1 million. This monitoring allows FINCen to trace large, anonymous cash purchases that could be used to hide illegal funds, giving law enforcement agencies the ability to investigate and prosecute financial criminals more effectively.

A major initiative that FINCen is currently enforcing is the Beneficial Ownership Information Report (BOIR). Effective by December 31, 2024, this requirement mandates that all non-exempt companies in the U.S. must report their beneficial owners—individuals who own or control at least 25% of the entity. This transparency measure, introduced under the Corporate Transparency Act, aims to prevent criminals from using anonymous shell companies to evade detection. Beneficial ownership information helps law enforcement agencies determine who actually controls a business, making it easier to identify and prosecute individuals involved in fraud, tax evasion, and other criminal activities.

The BOIR requirement represents a significant shift in how companies disclose their ownership information, marking a major step forward in reducing corporate secrecy. FINCen’s oversight in this area ensures that companies operating within the U.S. provide accurate and current ownership data. Failing to comply with the BOIR requirements carries serious consequences. Non-compliant entities may face civil and criminal penalties, including fines up to $10,000 per day and, in extreme cases, prison terms of up to two years.

For businesses looking to comply with these regulations, REBLAW, a division of Lex Tecnica, LTD, can provide valuable assistance. We can help ensure all required information is accurately gathered and filed to meet FINCen’s standards. Whether a business needs guidance on whether it is subject to reporting requirements or simply wants to file the necessary paperwork with minimal stress, REBLAW offers the necessary legal expertise.

Understanding FINCen’s role and staying in compliance with its regulations is crucial for businesses operating in the U.S. FINCen’s mission to keep financial channels free from criminal exploitation supports a secure economy and national safety. For more information on how to comply with BOIR requirements, reach out to REBLAW, we can guide your business through this important regulatory process.