PENNSYLVANIA — The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, will require many companies in the United States to disclose information regarding their beneficial owners starting Jan. 1, 2024. Beneficial owners refer to the individuals who ultimately own or control these companies.
This new federal requirement aims to enhance transparency and prevent illicit activities such as money laundering and fraud. Secretary of the Commonwealth Al Schmidt emphasized that while this is not a Pennsylvania-specific requirement, the state’s businesses are being informed to facilitate necessary preparations for compliance.
Schmidt noted, “The Department’s Bureau of Corporations and Charitable Organizations maintains records of more than 3 million companies that do business in the Commonwealth and serves as the centralized filing office for Uniform Commercial Code financing statements.”
Existing companies registered to operate in the United States prior to Jan. 1, 2024, will have until Jan. 1, 2025, to submit their beneficial ownership reports to FinCEN. However, new companies registered on or after Jan. 1, 2024, will only have 90 calendar days from the notice of their effective registration to submit their reports.
Notably, there are 23 categories of business entities exempted from this new reporting requirement. Pennsylvania business owners can learn more about the reporting requirements and exemptions on FinCEN’s official website. The implementation of this new regulation aims to be a significant step in the federal government’s efforts to promote corporate transparency and combat financial crimes.
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