See below email with content to send to client, please let me know your thoughts. Thanks!
Dear [Client’s Name],
I trust this message finds you in good health. We are writing to inform you of the recent regulatory updates regarding Beneficial Ownership Information (BOI) reporting and the necessary steps for compliance. Our commitment is to ensure a seamless transition as you navigate these changes. Here are the key details and requirements:
BOI Reporting Overview:
BOI reporting is a critical compliance requirement aimed at enhancing financial transparency and combating financial crimes. It entails disclosing information about the beneficial owners of legal entities.
Certain entities, such as those in highly regulated industries (e.g., insurance, banks), tax-exempt entities (e.g., non-profits), and specific large operating companies, may be exempt from these requirements. Exemption eligibility may vary depending on the business structure.
Beneficial Owner Information:
Beneficial owners are individuals with substantial control or ownership of 25% or more of the entity. Required information for beneficial owners includes full legal name, date of birth, and current physical address, along with scanned identification documents.
Effective Date: This rule took effect on January 1, 2024.
Initial Reporting Deadline: Companies existing before January 1, 2024, have until January 1, 2025, to file their initial reports. Companies created or registered after January 1, 2024, must file within 90 days of their establishment.
Ongoing Reporting: All reporting companies, both existing and new, must submit updates within 30 days of any changes in beneficial ownership information.
Penalties for Non-Compliance:
Non-compliance with the Corporate Transparency Act carries severe consequences, including:
Civil fines of up to $500 per day for ongoing violations.
Potential criminal penalties, such as fines up to $10,000 and imprisonment for up to two years, or a combination of both.
The fee for reporting the first beneficial owner for a reporting entity is $300. This fee covers the initial review and submission of BOI information. Additional beneficial owners will incur a fee of $150 each.
To ensure accurate BOI reporting, please provide us with the following details for your reporting entity:
- Copy of a valid License/Passport for each Beneficial Owner
- Residential address of each beneficial owner
We recognize the significance of staying informed and compliant with regulatory changes. KSDT is here to support you throughout this transition. Please feel free to reach out to your dedicated team member with any questions or concerns regarding the FINCEN Beneficial Ownership Reporting requirement.
If you choose to opt out of the above offered service, please let us know at the earliest convenience.
Thank you for your continued trust in our services. We anticipate a successful collaboration as we navigate these regulatory changes together.