12/15/2023

New Rules for Beneficial Ownership Opens New Fraud Avenue

All Members

The State of Minnesota is sending out emails to businesses regarding the new requirement around Beneficial Ownership.

"The Office of the Minnesota Secretary of State is reaching out to make you aware of reporting requirements that go into effect on January 1, 2024, that may require your business to report its beneficial ownership information to the Federal government. You do not need to take any action now.

Beginning on January 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of the Treasury. 

NOTE: This will be a free filing that companies can complete themselves. Be wary of official-looking mail from a third-party company offering to complete the beneficial ownership reporting on behalf of your company for a fee. See below* for more information on mail solicitations, or visit: www.sos.state.mn.us/business-liens/mail-solicitations/"

On the FinCen website, they are reporting fraudulent attempts to solicit information from companies.

"Alert: FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled "Important Compliance Notice" and asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. FinCEN does not send unsolicited requests. Please do not respond to these fraudulent messages, or click on any links or scan any QR codes within them."

You can find more information on the changes at the FinCen site, https://www.fincen.gov/boi