Dear Member,
 
As a member of the Adirondack Regional Federal Credit Union who has a business account, we want to make you aware of a new federal requirement that may affect you.
 
On Jan. 1, 2024, a new law took effect requiring many businesses to provide their beneficial ownership information (BOI) with the U.S. Treasury Department and its Financial Crimes Enforcement Network (FinCEN). The Corporate Transparency Act, passed by Congress in 2021, makes it easier for law enforcement, intelligence and national security authorities to root out money laundering, corruption, fraud and other crimes.
 
As many as 32 million companies are affected by the law.
 
The new regulation applies to new and existing companies that have filed incorporation paperwork with state or tribal authorities. Businesses that completed this paperwork before Jan. 1, 2024, have until Jan. 1, 2025, to comply. If forming a business after Jan. 1, 2024, you have 30 days from your incorporation date to file beneficial ownership information with FinCEN.
 
Certain businesses are exempt from the reporting requirement. Examples of exempt entities include public companies, investment advisers, large operating companies, non-profits, and sole proprietors that have not incorporated with the Secretary of State. A “large operating company” is one that has 20 or more full-time employees based in the U.S. and reported more than $5 million in sales on its most recent tax return. (Consult your attorney or tax preparer to ask questions about your specific situation.)
 
You can learn more about the law and what is required to comply with it on the attached fact sheet prepared by FinCEN. You can also find more information or register at FinCEN’s website: fincen.gov/boi.
 
We hope you find our information update on this new law helpful and, as always, if you have any questions, we would be happy to assist you in any way we are able.
 
Sincerely,

Russ Cronin
President & CEO