Today, Congresswoman Lizzie Fletcher (TX-07) and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) Deputy Director Jimmy Kirby hosted an event to help small business owners and leaders in the business community better understand the new beneficial ownership information reporting requirement.  

“I was glad to join Deputy Director Kirby to provide an opportunity for small business owners and leaders in the Houston business community to learn more about the new beneficial ownership information reporting requirement and to provide a forum to answer questions,” said Congresswoman Lizzie Fletcher.  “Filing the beneficial ownership information report will go a long way in filling a major loophole in criminal detection and helping regulators and law enforcement officials in tracking all sorts of nefarious activities.  I was glad to work with Deputy Director Kirby to ensure a better understanding of this new reporting requirement.”

In December 2021, Congresswoman Fletcher voted for the National Defense Authorization Act for Fiscal Year 2022, S.1605, which included the Corporate Transparency Act—a bipartisan bill to require companies doing business in the U.S. to report information about the individuals who ultimately own or control them to FinCEN.  President Biden signed this bill into law. 

Requiring companies to disclose who controls them increases transparency of company ownership structures and helps prevent misuse of corporations and limited liability companies for criminal gain.  These reports will help FinCEN coordinate with law enforcement for the purpose of detecting, preventing, and punishing money laundering, fraud, the financing of terrorism, drug trafficking, corruption, and other misconduct through business entities.

Filing is quick, secure, and free of charge.  It is not an annual requirement.  Unless a company needs to update or correct information, it only needs to be filed once.  FinCEN expects that most companies will be able to file without the help of a lawyer or accountant, and that the filing process for those with simple ownership structures may take 20 minutes or fewer.  Companies that existed before 2024 have until January 1, 2025 to file, while companies created or registered in 2024 must file within 90 days of receiving creation/registration notice.  For more information on the Beneficial Ownership Information requirement, click here.