Wondering about what happens if a company fails to report beneficial ownership information (BOI) to FinCEN or fails to update or correct the information within the required timeframe?

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We are working hard to ensure that companies are aware of their obligations to report, update, and correct BOI reports. According to FinCEN, if you correct a mistake or omission within 90 days of the deadline for the original report, you may avoid being penalized. However, you could face civil and criminal penalties if you disregard your beneficial ownership information reporting obligations.

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A person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $591 for each day that the violation continues. That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a BOI report, willfully filing false beneficial ownership information, or willfully failing to corrector update previously reported beneficial ownership information.

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Both individuals and entities can be held liable for willful violations. This can include not only an individual who actually files (or attempts to file) false information with FinCEN, but also anyone who willfully provides the filer with false information to report. Both individuals and entities may also be liable for willfully failing to report complete or updated beneficial ownership information; in such circumstances, individuals can be held liable if they either cause the failure or are a senior officer at the company at the time of the failure.

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An individual who willfully files a false or fraudulent BOI report on a company’s behalf may be subject to the same civil and criminal penalties as the reporting company and its senior officers.

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In addition, an enforcement action can be brought against an individual who willfully causes a reporting company’s failure to submit complete or updated beneficial ownership information to FinCEN. This would include a beneficial owner or company applicant who willfully fails to provide required information to a reporting company.