Accepted Forms of ID for FinCEN's BOIR: Beneficial Ownership Filing in the United States

Complying with the CTA and FinCEN’s BOIR

The Corporate Transparency Act (CTA), implemented by the Financial Crimes Enforcement Network (FinCEN), mandates new reporting requirements for LLCs and Corporations in the United States.

This article outlines the specific ID documents that reporting companies must provide about their beneficial owners and company applicants to ensure compliance with the CTA and FinCEN’s BOIR.

 

Introduction to Beneficial Ownership Filing Requirements

The Corporate Transparency Act aims to enhance corporate transparency and prevent money laundering in the United States by requiring companies to disclose information about their beneficial owners and company applicants.

Beneficial owners are defined as the individuals who exercise substantial control over a company or own 24% or more of the company.

 

Detailed Reporting for Company Applicants

For each individual identified as a beneficial owner or company applicant, the CTA requires the following information to be reported to FinCEN:

1. Full Legal Name: The complete legal name of the individual must be provided accurately.
2. Date of Birth: The precise date of birth is required to confirm the identity of the company applicant.
3. Residential or Business Address:
   • If the company applicant works in corporate formation (such as an attorney or corporate formation agent), the reporting company must provide the applicant's business address.
   • Otherwise, the residential address of the company applicant is required.
4. Identifying Number and Document:
   • Identification Document: The reporting company must submit a unique identifying number from an acceptable identification document, such as a passport or U.S. driver’s license.
   • Issuing Authority: The name of the issuing state or jurisdiction of the identification document must also be provided.
   • Document Image: An image of the identification document used to obtain the identifying number must be submitted. This step ensures the authenticity of the reported information.

 

 

Acceptable Identification Documents for FinCEN’s BOIR

To comply with FinCEN’s requirements, the following forms of identification are considered acceptable:

1. U.S. Driver’s License: Any non-expired driver’s license issued by a state, commonwealth, territory, or possession of the United States.
2. State or Local Government ID: Non-expired identification documents issued by a U.S. state, local government, or Indian Tribe.
3. U.S. Passport: A non-expired passport issued by the U.S. government.
4. Foreign Passport: If an individual does not possess one of the other forms of identification listed above, a non-expired passport issued by a foreign government is permitted.

 

Compliance and Verification

Ensuring compliance with these requirements is crucial for maintaining the legal and operational integrity of your business. FinCEN provides resources to aid in this process, including a checklist in the Small Entity Compliance Guide.

This checklist, found in Chapter 4.1 (“What information should I collect about my company, its beneficial owners, and its company applicants?”), assists reporting companies in identifying and collecting the necessary information for their reports.

 

Conclusion

The Corporate Transparency Act’s requirements for reporting company applicants are essential for regulatory compliance in the United States. By gathering and submitting the required information—including the applicant's name, date of birth, address, and an identifying number from an acceptable identification document, along with an image of the document—LLCs and Corporations can ensure they meet these new reporting requirements.

 

Della Torre Law PLLC