What is a FinCEN Identifier and how do you obtain one?
The Corporate Transparency Act (CTA) has now taken effect, and reporting companies must file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN), including personal details about owners and company applicants.
In place of providing the required owner and company applicant information, individuals and companies can apply for a FinCEN identifier and supply this in their BOI report. There are many benefits to obtaining and using a FinCEN identifier, such as enhanced privacy, and streamlined administration processes.
In this guide, we’ve compiled information on how to acquire a FinCEN Identifier and highlighted the key benefits of using one for individuals and reporting companies.
What is a FinCEN Identifier?
A FinCEN Identifier (also known as a FinCEN ID number,) is a unique 12-digit identifying number that the FinCEN issues to individuals or reporting companies.
The FinCEN identifier can only be issued after certain identifiable information has been provided about company owners; however, after it has been generated, owners can include it in BOI reports instead of submitting personal information.
What are the benefits of obtaining a FinCEN Identifier?
There are many advantages to obtaining a FinCEN Identifier, such as the following:
A FinCEN ID number better protects your privacy as an owner, since you provide a number in BOI reports, instead of repeatedly disclosing personal information.
Using a FinCEN identifier simplifies the entire reporting process, meaning you don’t need to compile and file heaps of information every time you submit a report. It is also extremely beneficial for entities with multiple filing requirements and eases the administrative burden put on your company.
Do you need a FinCEN number?
No. It is not a requirement to obtain a FinCEN identifier. It is entirely optional and left to the discretion of the individual or reporting company.
How many FinCEN identifiers can be obtained by an individual or reporting company?
Each FinCEN identifier is entirely unique and only one can be obtained per individual or reporting company.
How to get a FinCEN number
Obtaining a FinCEN number is a fairly simple process, and individuals or companies can acquire one themselves directly with FinCEN at no cost.
Individuals must apply for the FinCEN ID number electronically via their login.gov account, and supply the following information:
Name
DOB
Address (either business or residential)
Unique identifying number and issuing jurisdiction from an acceptable ID document (such as a driver’s license, state ID, U.S. passport, or foreign passport)
An electronic image of the ID document
After online submission, individuals will immediately receive their FinCEN ID.
Reporting companies can request a FinCEN ID when submitting a BOI report by checking a box on the reporting form. It is essential to note that a reporting company can report another entity’s FinCEN ID number and legal name instead of beneficial owner information if the following three conditions are met:
The other entity obtains a FinCEN ID number and provides it to the reporting company.
The beneficial owners have an interest in the reporting company through ownership interests in the other entity.
The owners of the reporting company and the other entity are the same people.
What if changes to Beneficial Ownership Information occur?
It is necessary to supply accurate ownership information to obtain a FinCEN identifier. If this information changes at any point, then the individual or reporting company must update the FinCEN of these changes. Failure to do so can lead to non-compliance, fines, or jail time.
The rules below apply if ownership information changes occur:
Individuals must report any change to the information no later than 30 days after the date on which the change occurred.
If there is an inaccuracy in the information, then this must be amended no later than 30 days after the individual became aware of the inaccuracy.
For reporting companies, the company must update information by filing a new BOI report.
How Computershare can help you comply with the CTA
Computershare offers various corporate compliance services to help businesses stay on top of the new CTA reporting requirements. Our Global Entity Management System, GEMS™, has capabilities to help you track ownership information. We also offer registered agent services and can assist with the formation of your entity and provide you with the company applicant information to be included on your BOI report, if applicable.
To learn more about how Computershare can assist you with every aspect of your CTA compliance, contact our team today.