A short video by Donna Genie explaining new beneficial ownership reporting requirements effective January 1, 2024. It covers who must report (owners >25% or those with substantial control), the federal intent to curb money laundering and terrorism financing, and notes exemptions for publicly held companies, many nonprofits, and other entities (about 23 exemptions), with small family-owned businesses largely affected.
Have you heard rumblings about some new reporting about to go into effect for January 1, 2024? I'm hearing people say things happening with FinCEN, with the SEC or with the IRS. Nobody's really sure who's in charge of this, but we're going to clarify it and knock this out for you. The answer is yes. There is new reporting set to go in effect for January 1, 2024, where you have to report ownership of any entities where you own more than 25% ownership interest, you have substantial control of that company. Now where we report that it's going to be under the federal government, they're looking to stop opportunities for money laundering, terrorism, all these types of things where people form entities to hide activities and nobody really knows who the owners are. That's what they're trying to eliminate or stop here. There are some exemptions to this reporting. If you're a publicly held company owner, you don't have to report that. So that's an exemption. Many nonprofits or larger operating entities may be exempt from this. There are 23 different exemptions at this point. But for the most part, the mom and pops, the smaller entities, family owned businesses, you're going to be subject to this reporting.
