Beneficial Ownership Information

What is BOI?

There is a new rule effective January 1, 2024, that will impact many companies in the U.S. This rule requires certain companies to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company and possibly the company applicants. The information must be reported to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

Additionally, when opening a business account at BankSouth, a Beneficial Ownership Form must be completed. This form is designed to comply with a separate government requirement, known as the Customer Due Diligence Rule. The rule requires identifying the beneficial owners of legal entity customers. This form requires, among other information, the legal entity’s name and business street address and the name, date of birth, address, identification number (i.e. the taxpayer identification number (TIN), Social Security Number (as applicable), the name of the issuing state or country, and number of the passport or driver’s license for the Beneficial Owners and Control Person, as applicable.

Frequently Asked Questions

Beneficial Ownership Information FAQs

Who does it apply to?

Companies required to report are called reporting companies. Reporting companies have to obtain information from their beneficial owners and report that information to FinCEN.

Your company may be a reporting company if it is:

A corporation, limited liability company (LLC), or was otherwise created in the U.S. by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
A foreign company and was registered to do business in any U.S. state or Indian tribe.

FinCEN’s website has all the information you need to determine eligibility for exemption. The Small Entity Compliance Guide includes checklists for each of the 23 exemptions. For the full list of companies that qualify for an exemption, visit www.fincen.gov/boi.

Why do customers need to file?

In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

What happens if a customer doesn’t timely file?

Non-compliance may result in civil & criminal penalties.

If a company was created or registered before 1/1/24, the deadline to file the initial report with FinCen is 1/1/25.
If a company was created on or after 1/1/24, the company has 90 days after receiving notice of its creation or registration to file its initial report.
If a company was created on or after 1/1/25, the company has 30 days after receiving notice of its creation or registration to file its initial report.

How do I report?

Reporting companies will have to report beneficial ownership information electronically through FinCEN’s
website, www.fincen.gov/boi.

Where can I find out more info?

For important information including what is needed to file, or who should file, visit FinCEN’s website at
www.fincen.gov/boi.
BankSouth is not offering any legal advice. Customers should confer with their legal counsel for additional information on this new requirement.