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After submitting your initial Beneficial Ownership Information (BOI) report, it’s crucial to maintain ongoing compliance with FinCEN regulations. The initial report is just the beginning; post-BOI report policies and procedures, such as filing updates and diligent management of beneficial ownership information are essential, as changes in information must be reported within 30 days.
Here are some key post-BOI report policies and procedures companies may consider implementing to ensure they remain compliant and avoid potential penalties.
Post-BOI Report Policies & Procedures:
Schedule Regular Reviews
Establish a routine review process to ensure that the information in your initial BOI report remains accurate. Schedule regular internal audits to verify the accuracy of beneficial ownership details. This proactive approach helps identify and rectify discrepancies promptly, as needed, avoiding non-compliance issues. Learn more about BOI reporting requirements.
Designate a Compliance Officer
Appoint a dedicated compliance officer responsible for overseeing BOI reporting and updates. This individual should stay informed about changes in regulations and ensure that the company’s policies are up to date. The compliance officer will also serve as the point of contact for any queries related to BOI compliance. Read about the importance of updating beneficial ownership information.
Implement Robust Record-Keeping Practices
Maintain comprehensive records of all beneficial owners, as well as any changes in ownership. This includes keeping copies of all submitted reports and any amended or restated entity documentation. Detailed records will provide a clear audit trail, making it easier to demonstrate compliance during inspections or audits.
Employee Training and Awareness Programs
Educate employees about the importance of BOI reporting and the procedures for maintaining compliance. Individuals that are reported on BOIRs will need to notify the company when their personal information changes so it can be reported. For those who are being hired in positions of substantial control, it may be a good idea to integrate educating them about their BOI requirements in the onboarding process.
Clear Internal Communication Channels
Establish clear communication channels within the organization to ensure that any changes in beneficial ownership are promptly reported to the compliance officer. Encourage open communication to prevent any delays in updating the BOI report.
Use of Compliance Software
Consider investing in CTA compliance software that can automate and streamline the reporting process. Software solutions can make reporting changes easy, generate draft reports for upper management to review, and keep track of upcoming deadlines.
Establish a Response Plan for Non-Compliance
Develop a response plan to address any instances of non-compliance. This plan should outline steps for identifying and rectifying issues, as well as communication strategies for notifying relevant authorities. Having a response plan in place will help mitigate the impact of any compliance breaches. If information was erroneously reported to FinCEN, there is a 30-day deadline for filing a corrected report with the right information.
Conclusion
Maintaining compliance with FinCEN’s BOI reporting requirements is an ongoing responsibility that extends beyond the initial report, even though it is not an annual requirement.
