Upcoming Webinar: December 10th, 1 PM EST – The Corporate Transparency Act: BOI Reporting With Less Than 30 Days Left in 2024!
With less than 50 days until the federal deadline for Beneficial Ownership Information (BOI) reporting, CFOs across industries are facing an urgent need to implement an efficient and compliant solution. This new regulatory requirement, established under the Corporate Transparency Act (CTA), aims to reduce financial crimes like money laundering and terrorist financing by increasing transparency around ownership structures within U.S. companies. Yet for CFOs, this new reporting mandate presents a deadline and a potential shift in their roles within the organization, as many CFOs may be considered Beneficial Owners under BOI guidelines.
Adding to the pressure, many corporate attorneys and accountants are declining responsibility for filing BOI reports, placing the onus directly on company leadership. This often means that CFOs, already handling financial compliance, must now oversee BOI compliance to ensure their companies avoid penalties.
Here’s what CFOs need to know about the CTA’s BOI reporting requirements and the steps they should take to ensure compliance by the rapidly approaching year-end deadline.
Understanding BOI Reporting and CFOs’ Role
The CTA mandates that certain entities disclose “beneficial owners,” individuals who either exercise significant control over a company or own a substantial portion of it (usually 25% or more). In addition to board members, senior officers like the CEO and CFO may also be classified as beneficial owners due to their significant influence over financial and strategic decisions. This is particularly true if a CFO has the authority to make substantial changes in corporate policy, finances, or operations.
Given the CFO’s role in overseeing corporate finance, they are well-positioned to understand the nuances of this regulation. However, with legal and accounting professionals often refraining from taking direct responsibility for BOI reporting, CFOs must be prepared to handle these new reporting requirements. The Financial Crimes Enforcement Network (FinCEN) will soon begin enforcing penalties for non-compliance, which could be costly for companies of all sizes.
Why CFOs Should Prioritize BOI Compliance
Implementing a BOI Reporting Solution
To meet these new demands, CFOs should consider adopting a BOI reporting solution that streamlines data collection, verification, and reporting while maintaining data security. Here’s what an ideal solution should offer:
The Clock is Ticking: CFOs Need to Act Now
With the deadline fast approaching, CFOs cannot afford to delay their compliance efforts. An effective BOI reporting solution will ensure their companies are ready to meet federal requirements on time, helping them avoid penalties and safeguarding the company’s reputation. CFOs who take proactive steps now will position their organizations for a smoother compliance process, strengthen corporate governance, and reduce risks associated with the CTA.
For CFOs, the Corporate Transparency Act represents a new era of financial accountability and transparency. By embracing a comprehensive BOI reporting solution, CFOs can uphold their company’s commitment to compliance, bolster their roles as key strategic advisors, and contribute to a more transparent business environment. The countdown to compliance is on—CFOs, it’s time to take action.
If you need to learn more, please register for one of our upcoming webinars on Wednesday, November 20th, 2024 at 1:00 pm EST or on Tuesday, December 10th, 2024 at 1:00 pm EST where we will cover the latest updates from FinCEN, Q+A, a Demo of how to file.
Ready to file now? Get started here!