Reported by FinCEN

A new federal reporting rule from the Financial Crimes Enforcement Network (FinCEN) will take effect March 1, 2026, expanding national anti-money-laundering obligations into the U.S. residential real estate market.

FinCEN has published a detailed set of Frequently Asked Questions (FAQs) to help stakeholders understand the Beneficial Ownership Information (BOI) Reporting Rule, which implements the Corporate Transparency Act (CTA). The rule requires certain entities formed or registered to do business in the United States to report information about their beneficial owners and company applicants to FinCEN. The FAQs clarify who must report, what information must be provided, when reports are due, and how FinCEN uses and protects the data.

Under the BOI Reporting Rule, a reporting company generally includes most corporations, limited liability companies, and similar entities created under state or tribal law, as well as entities formed through foreign registration to do business in the U.S. There are numerous exemptions (e.g., publicly traded companies, certain large operating companies, and regulated entities like banks, insurers, and investment advisers) because these organizations either already disclose ownership information publicly or are subject to robust regulatory oversight.

Beneficial owners are individuals who exercise substantial control over a reporting company or own or control at least 25% of its ownership interests. The FAQs explain that companies must identify all such individuals and provide specific personal information—including name, date of birth, address, and a unique identification number from a passport, driver’s license, or FinCEN-issued ID. Companies also must report similar information about the company applicant—the person who directly files the formation or registration document.

The reporting timeline is phased: existing entities must file their initial reports by January 1, 2025, newly formed companies have 30 calendar days after formation to file, and certain foreign companies must file within 30 days of becoming registered to do business in the U.S. The FAQs confirm that updates are required within 30 days of any change to previously filed beneficial ownership information, and a complete updated report must be filed if previously submitted information becomes inaccurate.

FinCEN emphasizes that BOI reports are not public and may only be accessed by authorized government agencies (including law enforcement and national security agencies) and by financial institutions with customer consent for compliance purposes. The FAQs also cover enforcement provisions: failure to file accurate, timely reports can result in civil and criminal penalties under the CTA and the Bank Secrecy Act, underscoring that BOI reporting is a legal obligation with material compliance risk.

For more information, go to: https://www.fincen.gov/rre