March 24, 2023

The Financial Crimes Enforcement Network (FinCEN) has issued the first set of guidance materials addressing the upcoming beneficial ownership reporting requirements taking effect on January 1, 2024 pursuant to the agency’s September 30, 2022 beneficial ownership reporting rule. As you may recall, SWACCA submitted comments on this rule when it was originally proposed in February 2022 that successfully advocated for FinCEN to extend the rule’s exemption from beneficial ownership reporting requirements for nonprofit entities to 501(c)(6) organizations by broadly defining “tax-exempt entities” to ensure many SWACCA affiliates are covered by the nonprofit exemption. The final rule also adopts SWACCA’s request to define “full-time employee” pursuant to the Affordable Care Act so that construction contractors and other employers with seasonal variations in their workforce may be able qualify for an exemption from the reporting requirements for operating companies that meet certain employee and revenue thresholds.

The new materials, available on FinCEN’s “Beneficial Ownership Information Reporting” webpage, include: (1) answers to Frequently Asked Questions about reporting requirements; (2) one-pagers on “Key Filing Dates” and “Key Questions”; and (3) a one-minute “introductory video” and a more detailed four-minute “informational video” regarding the reporting requirement.

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