The Purpose of a FinCEN Identifier
In a Beneficial Ownership Information (BOI) Report, a reporting company must submit certain information about itself, such as its name, address, jurisdiction of organization, and tax identification number. Furthermore, reporting companies must provide personal information about each beneficial owner, such as name, date of birth, address, and the identifying number and issuer of their legal identification. An image of the document must also be submitted.
Instead of disclosing personal information to a reporting company for inclusion in its BOI Report, a beneficial owner or company applicant can acquire a unique identification number allocated by the Financial Crimes Enforcement Network (FinCEN) known as a FinCEN Identifier (FinCEN ID).
Having a FinCEN ID can simplify and streamline the BOI reporting process while allowing entities or individuals to submit required information directly to FinCEN instead of having to report the information to each company owned. It also increases security and transparency in financial transactions. This is essential for combating fraud, identity theft, money laundering, terrorist financing, and other financial crimes.
To request a FinCEN ID, complete the electronic form at https://fincenid.fincen.gov.
How to Effectively Use a FinCEN Identifier
When a beneficial owner or company applicant acquires a FinCEN ID, reporting companies may substitute personal information required on the BOI Report with their FinCEN ID, eliminating the need to provide personal information to the company. Furthermore, acquiring a FinCEN ID allows reporting companies from having to file updated BOI Reports when the personal information of a beneficial owner changes. For example, in the event of an address change, the beneficial owner can update it directly with FinCEN. This eliminates the need to inform each reporting company individually.
Following these steps can effectively streamline the reporting process, facilitate due diligence, and maintain compliance with regulatory requirements.
Here to Help
If you have questions about your unique situation or need strategic advice regarding tax planning, we are here to help. We build value-added relationships with each client to understand their business structure to provide solid solutions, and our approach offers direct access to the firm's decision-makers. Our innovative cross-functional services help businesses address the challenges ahead. Contact us to let us know how we can best support you.