We are a team of DOT Compliance and Licensing Professionals helping trucking and transportation companies remain safe, compliant, and profitable.
CNS or Compliance Navigation Specialists is DOT Compliance company that assists trucking and transportation companies remain DOT Compliant. We are part of a network of companies, CNS Companies, specializing in services related to the transportation, manufacturing, construction, service, education and medical industries.
We are a team of DOT Compliance and Licensing Professionals helping trucking and transportation companies remain safe, compliant, and profitable.
CNS or Compliance Navigation Specialists is DOT Compliance company that assists trucking and transportation companies remain DOT Compliant. We are part of a network of companies, CNS Companies, specializing in services related to the transportation, manufacturing, construction, service, education and medical industries.
Many companies, including motor carriers, are now required to report information to FinCEN about the individuals who own or control them, or face fines. Here’s what you need to know.
Starting and running a company includes a lot of registration and important business accounts to be created. Well, there is one more thing to add to the list!
Starting January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) is requiring some basic information to be collected from or reported by many corporations, limited liability companies (LLCs), partnerships, trusts, and other legal entities in hopes of preventing money laundering shell accounts.
While there are exemptions, new and existing trucking businesses are required to go through the new registration process.
Luckily, CNS is here to help break this down and possibly handle this process on your behalf.
Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.
In 2021, Congress passed the Corporate Transparency Act that created a new beneficial ownership information reporting requirement.
The new requirement is part of the U.S. government’s efforts to make it harder for criminals to hide from any illegal activity, which in this case involves the laundering of money through a shell company or other opaque ownership structure.
For some time, organized crime has found a way to function by creating small businesses that operate as a front or a shell company so they can launder money. The money is being laundered through a legitimate business to “clean” it, if it was earned from some other illegal activity, like human trafficking operations, drug trade, etc.
These businesses are illegal, inhumane, and undermine the economic growth and security of the United States.
While the Beneficial Owner Information Report process will not singlehandedly stop illegal business interactions, it is a step in the right direction to make such business far more difficult. In the end, it will protect business growth and the well-being of civilians.
Not all companies are required to report BOI to FinCEN under the Reporting Rule.
Companies are required to report only if they meet the Reporting Rule’s definition of a “reporting company” and do not qualify for an exemption.
Who needs to do this?
FinCEN uses 3 main requirements to determine who must report:
So, first, you need to determine if you fall into the category of a “reporting company”. Look at the chart below, which can help determine if you are considered a domestic or foreign reporting company.
After this, your next step is to identify its beneficial owners. A beneficial owner is any individual who, directly or indirectly:
Note: A reporting company can have multiple beneficial owners.
For example, a reporting company could have one beneficial owner who exercises substantial control over the reporting company, and a few other beneficial owners who own or control at least 25 percent of the ownership interests of the reporting company. A reporting company could have one beneficial owner who both exercises substantial control and owns or controls at least 25 percent of the ownership interests of the reporting company. There is no maximum number of beneficial owners who must be reported.
Our CNS Licensing team can help you do this process on your behalf. If you are interested, fill out the form below… otherwise call us at (888) 260-9448 or email at info@cnsprotects.com.
There are 23 types of entities that are exempt from BOIR requirements (learn more here). These are:
| Exemption No. | Exemption Short Title |
|---|---|
| 1 | Securities reporting issuer |
| 2 | Governmental authority |
| 3 | Bank |
| 4 | Credit union |
| 5 | Depository institution holding company |
| 6 | Money services business |
| 7 | Broker or dealer in securities |
| 8 | Securities exchange or clearing agency |
| 9 | Other Exchange Act registered entity |
| 10 | Investment company or investment adviser |
| 11 | Venture capital fund adviser |
| 12 | Insurance company |
| 13 | State-licensed insurance producer |
| 14 | Commodity Exchange Act registered entity |
| 15 | Accounting firm |
| 16 | Public utility |
| 17 | Financial market utility |
| 18 | Pooled investment vehicle |
| 19 | Tax-exempt entity |
| 20 | Entity assisting a tax-exempt entity |
| 21 | Large operating company |
| 22 | Subsidiary of certain exempt entities |
| 23 | Inactive entity |
As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues.
That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000.
Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
Reports will be accepted starting on January 1, 2024, but the deadline for reporting does vary:
Our CNS Licensing team can help you do this process on your behalf. If you are interested, fill out the form below… otherwise call us at (888) 260-9448 or email at info@cnsprotects.com.
Below are some required information for the BOIR:
In addition to filing an initial BOI report, reporting companies must also update and correct information (within 30 days) in their previously filed BOI reports and individuals who obtain FinCEN identifiers must also update and correct information previously reported to FinCEN (within 30 days).
For more information, call (888) 260-9448 or email us at info@cnsprotects.com.
CNS can help with our Roadside & Incident Report Management service where a team of DOT Compliance Specialists will assess the Department of Transportation safety records
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CNS can help with our Roadside & Incident Report Management service where a team of DOT Compliance Specialists will assess the Department of Transportation safety records
Do you travel in or through British Columbia, Canada? There is now a speed limiter requirement affecting most heavy trucks, as of Friday April 5,
If your lights aren’t on at night, but they work, that’s no longer an OOS violation, though it’s still a violation of state laws to
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