Protecting Privacy or Compromising Security? Debate Surrounds FinCEN’s Authority Expansion

Protecting Privacy or Compromising Security? Debate Surrounds FinCEN’s Authority Expansion

FinCEN has introduced the Beneficial Ownership Information Electronic Filing (BOI E-Filing) website (https://boiefiling.fincen.gov) effective January 1, 2024. This means:

  • Reporting companies established or registered before this date have until January 1, 2025, to submit their initial BOI report.
  • Companies established or registered in 2024 must file within 90 days of receiving notice of their effective creation or registration.
  • Those created or registered on or after January 1, 2025, must file within 30 days of receiving such notice.

Authorized individuals, including employees, owners, or third-party service providers designated by the reporting company, may file a BOI report on its behalf. Filers must provide basic contact information, including name and contact details when submitting the report.

Exemptions apply to certain companies, as specified on FinCEN’s website. Failure to register accurately may result in fines and penalties, emphasizing the importance of designated clerks to oversee proper filing and registration procedures. Under their authorization, clerks will facilitate and certify ownership changes within companies.

While ostensibly aimed at protecting private ownership rights under one umbrella, FinCEN’s authority expansion enables other qualifying agencies to access sensitive information. Concerns arise regarding the government’s ability to securely retain and protect this data, particularly in light of past breaches and information leaks. Financial institutions routinely access personal data without explicit consent, and state governments leverage federal databases to verify individuals’ financial histories, raising questions about privacy and security.

In pursuit of national security, this initiative imposes additional burdens and costs, potentially compromising individual privacy. FinCEN will likely expand its power and collection requirements over time as it assumes greater authority. Individuals and companies should prepare for heightened scrutiny and compliance measures.

Chasse & Co. is ready to offer expert guidance through this transition. Our team is poised to help companies navigate the intricacies of these new regulations, ensuring compliance and peace of mind.

 

Dan Chasse
CPA, Managing Partner
Chasse & Co.