Businesses must begin registering with Financial Crimes Enforcement Network

Editor’s note: This story includes information provided by the Indiana’s Secretary of State’s office

Associated Press

INDIANAPOLIS — Indiana’s Secretary of State Diego, Morales, is alerting new businesses about a new federal regulation that requires them to report beneficial ownership information to the Federal government within 90 days of formation. 

Businesses registered in Indiana prior to January 2024 will be required to report beneficial ownership to the Federal Government starting in 2025.  

Small businesses will need to register with an agency called the Financial Crimes Enforcement Network (FinCEN), in 2024, as part of an act passed in 2021 called the Corporate Transparency Act.

Diego Morales

The Secretary of State’s Office has established a webpage with resources to guide businesses on how to comply.

The act was intended to get a look inside shell companies and crack down on attempts by “criminals, organized crime rings, and other illicit actors to hide their identities and launder their money through the financial system,” Treasury Secretary Janet Yellen said in 2022.

Businesses with more than 20 employees and more than $5 million in sales can qualify for exemptions. But that leaves an estimated 32 million small businesses that aren’t exempt. The owners and part-owners of those businesses must register reports with FinCEN.

Enacted by Congress in 2021 as part of the National Defense Authorization Act, the CTA includes reforms to anti-money laundering laws and is intended to help prevent and combat money laundering, terrorist financing, corruption, and tax fraud. The CTA establishes a beneficial ownership reporting requirement for corporations, limited liability companies, and other similar entities formed or registered to do business in the United States. 

FinCEN has a comprehensive website, tools, and a call center to help businesses determine their filing requirements. Businesses registered in Indiana are advised to check with a corporation service company, accountant, CPA, or Attorney for individual guidance on the reporting requirements.

The implementation date and deadlines are currently being discussed by federal lawmakers.  The Indiana Secretary of State’s office will keep Hoosier businesses informed with updates.