How to Protect Yourself and Properly File with FinCEN

Key Takeaways:
  • File your BOI report through the official FinCEN website to avoid falling victim to scams.
  • Make sure you are dealing with a reputable provider for filing service fees. There is no filing fee to self-file at the FinCEN website. 
  • Be vigilant against fraudulent schemes and report any suspicious activity to the authorities immediately.

 

There has been an alarming rise in fraudulent schemes targeting businesses and individuals required to file Beneficial Ownership Information Reports (BOIR) under the Corporate Transparency Act (CTA). Scammers are preying on the confusion surrounding the new reporting requirements and attempting to trick people into paying for services they can access for free. Here’s what you need to know to protect yourself and ensure you’re following the correct procedure for reporting beneficial ownership. 

What Is Beneficial Ownership Reporting? 

The Corporate Transparency Act mandates that certain entities, including corporations and limited liability companies (LLCs), report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This requirement is part of a broader effort to increase transparency in corporate ownership and combat financial crimes such as money laundering and terrorist financing. 

Beneficial owners are individuals who exercise significant control over a company or who own a substantial percentage of the company’s equity. The CTA requires companies to file a BOI report to provide detailed information about these individuals. 

The Rise of Fraudulent Schemes 

Unfortunately, as new regulations come into play, so do new opportunities for fraudsters. Some scammers are exploiting the confusion and urgency surrounding beneficial ownership reporting by: 

  • Sending deceptive emails or letters that claim you need to pay a fee to file your beneficial ownership information. 
  • Creating fake websites that mimic official FinCEN pages, tricking individuals into entering their personal and business information or making unnecessary payments. 

How to Recognize & Avoid Fraudulent Schemes 

  • Verify the Source: Always ensure you are dealing with official sources. The legitimate filing process for beneficial ownership reports is handled through the FinCEN website. Be wary of any unsolicited letters or emails asking for payment or personal information. Any paper version of the beneficiary ownership reporting is fraudulent. 
  • Don’t Pay for What’s Free: Filing your beneficial ownership information with FinCEN should not involve any fees. If you are asked to pay a fee, it is likely a scam. 
  • Check the URL: When filing online, make sure you are on the official FinCEN website. The legitimate URL for FinCEN is www.fincen.gov. Avoid any site that looks suspicious or is not affiliated with this domain. 

Filing your Beneficial Ownership Information Online 

To file your beneficial ownership report correctly, follow these steps: 

  1. Visit the Official FinCEN Website: Go to www.fincen.gov and navigate to the section related to beneficial ownership reporting. There will be information and links to bring you to the filing page.
  2. Complete BOI Report: Enter all required information about the business and the beneficial owners. Be prepared to provide details such as names, addresses, dates of birth and identification numbers.
  3. Submit & Confirm: After completing the form, submit it electronically and you should receive a confirmation page with the opportunity to download a transcript of your report. Retain this confirmation for your records.
  4. Monitor for Updates: Keep an eye on any updates or additional information that FinCEN may require. It’s essential to stay compliant and make any necessary updates promptly.

Stay Vigilant & Report Suspected Fraud 

If you encounter any suspicious activity or believe you have been targeted by a fraudulent scheme, report it to the appropriate authorities. You can contact the Federal Trade Commission (FTC) or your state’s consumer protection office for assistance. 

By being cautious and using the official FinCEN website, you can ensure your beneficial ownership reporting is completed correctly and securely. Contact an Adams Brown advisor if you have any questions. 

Real Life Example of Fraudulent Letter