A BOIR stands for Beneficial Owner Information Report. This report is filed by companies that identify all beneficial owners, or those who own part or all of the company, to provide more protection over the funds of the company. This is a fairly newly introduced policy but it is important that it is extremely accurate. Minor errors in this document can result in large penalties. This article provides tips that will help you avoid mistakes when filing so that you do not run into any problems when doing it for the first time.

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Make Sure Filing Information is Accurate

It is important that all identifying information for each owner is up to date and correct. This includes things such as name, passport number, address, etc. One of the main purposes for this report is to protect the company against financial crimes. If the information is not accurate, it will be easier for others to find a way into the system. It also might suspect that the real owner is performing unusual activity if they are trying to verify their information but it is incorrect in the system.

File on Time

A big mistake that can be easily prevented is missing the deadline of when you need to file. Make sure you know when that date is and set a reminder in your calendar if you need. Companies made before the start of 2024 will need to file by January 1st, 2025 and those made in 2024 will need to file within 90 days of their registration becoming effective. Missing the filing deadline boir can result in civil penalties and you will have to pay for the violation.

Understand Filing Requirements

Based on the industry you are in, there can be slightly different requirements or exemptions. Make sure to thoroughly read through the FinCEN requirements. You can also contact a professional if you have any questions or need more assistance in completing the report.

Know Which Form to Fill Out

There are three different types of forms based on the transaction that needs to be recorded. BOI-1 is for reporting International Monetary Instruments, BOI-2 is for Financial Accounts and Foreign Banks, and BOI-3 is needed for International Transportation of Currency or Monetary Instruments. Using the wrong type can cause issues and the reports may be rejected.

Correct if Needed

On FinCEN.gov you can go in on your most recent report, correct any misinformation and then update it. It is best to fill out correct data the first time, but if there is a minor mistake, you are able to go in and fix it if you catch it before it’s too late.

Conclusion

These are a few ways to help you avoid mistakes when filing a BOIR. Do not be afraid to ask a compliance specialist for help, especially because this is a pretty new thing. It can be complex and a little overwhelming, but these things should help you feel more confident in filing this report.