Frequently Asked Questions We encounter

A Statement of Information (SOI) must be filed in California either annually or biennially, depending on the type of business entity:

• Corporations: Annually
• Limited Liability Companies (LLCs) and specific other organizations:     Biennially (every two years)

Note: The specific filing frequency may vary slightly based on the exact type of entity and its initial registration date.  #SOI #SOS #StateOfCalifornia

The Financial Crimes Enforcement Network (FinCEN) is a bureau within the United States Department of the Treasury. It collects and analyzes financial transaction information to combat domestic and international money laundering, terrorist financing, and other financial crimes.

Here are some of its key roles:

• Collecting & analyzing financial data: FinCEN receives and analyzes a vast amount of financial data from banks, credit unions, and other financial institutions.
• Identifying suspicious activity: It uses sophisticated tools and techniques to identify suspicious transactions and patterns that may indicate money laundering or other illicit activities.
• Issuing regulations & guidance: FinCEN develops regulations and guidance to help financial institutions comply with anti-money laundering      (AML) and counter-terrorism financing (CTF) laws.
• Cooperating with law enforcement: It works closely with law enforcement agencies to investigate and prosecute financial crimes.

If you have any specific questions about FinCEN or its activities, feel free to ask.

Yes, FinCEN (Financial Crimes Enforcement Network) and BOI (Beneficial Ownership Information) are connected. BOI is a new reporting requirement implemented by FinCEN to increase transparency in corporate ownership and combat financial crime.

Here's how they are connected:

• BOI Reporting: FinCEN is the government agency responsible for implementing and enforcing the BOI reporting rule.
• Data Collection: FinCEN collects the beneficial ownership information from reporting companies through the BOI reports.
• Data Analysis: FinCEN analyzes the collected data to identify potential risks and suspicious activities.
• Law Enforcement: FinCEN shares information with law enforcement agencies to assist in investigations and prosecutions related to financial crimes.

In essence, BOI is a tool used by FinCEN to enhance its ability to detect and prevent financial crimes.

BOIR, which stands for Beneficial Ownership Information Report

• BOIR: The Beneficial Ownership Information Report is a report that identifies the individuals who ultimately own or control a company. The  Corporate Transparency Act (CTA) requires certain entities to file a  BOIR with the Financial Crimes Enforcement Network (FinCEN). 
• BOI: BOI stands for beneficial ownership information.

 You can file a BOIR electronically using the BOI E-Filing System. You can also:    

• Prepare the report online and submit it immediately.
• Use the system-to-system API to automate the filing process.
• Download a transcript upon submission.
• Use Adobe Reader to complete the PDF BOIR.

 Penalties for non-compliance with BOIR reporting requirements include:    

• Civil penalties of up to $500 per day for ongoing violations.
• Criminal penalties of fines up to $10,000 and/or imprisonment for up to two years.

However, as of January 6, 2025, BOI reports are currently not required. A  federal court order temporarily suspended mandatory BOIR reporting, but reporting companies may still voluntarily submit reports.  #BOI #BOIR

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