FinCEN Update: No Fines or Penalties for Failure to File or Update BOI Report
In a recent release, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) made a surprising announcement to refrain from imposing fines and other penalties on entities that fail to file Beneficial Owner Information reports (BOI reports) or fail to update previously-filed BOI reports. In other words, FinCEN will not enforce the looming March 21, 2025 BOI filing deadline at this time. FinCEN’s freeze on enforcement proceedings will continue until final BOI reporting deadlines are imposed.
On or before March 21, 2025, FinCEN intends to issue an interim final rule. This interim rule would extend BOI reporting deadlines. In addition, the expectation is that FinCEN will further revise BOI reporting requirements separate and apart from the reporting deadlines. Those revisions are expected to ease filing requirements consistent with FinCEN’s commitment to reduce burdens for small businesses. GKH’s Corporate Practice Group attorneys will continue their monitoring efforts of FinCEN developments throughout the month.