Governmental Affairs Alert: Information on the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) 

Cardinal Services continues to focus on employment-related laws, new court cases, and regulatory changes that impact our business community. While the news about FinCEN is not directly employment-related, some employers could be subject to this new reporting rule. However, the new FinCEN reporting requirement has not been well publicized, but we think it is universal enough to inform you on this topic. 


FinCEN is the new Beneficial Ownership Information that requires some companies to identify and report owners who will financially benefit from their company. The underlying purpose of FinCEN is that owners of these companies will be providing ownership information that will prevent money laundering. There are exemptions, notably companies that do things like banking, investing, or brokers—presumably, those exempt are regulated in other ways. Also, we note that the focus seems to be on corporations, so not every small business will need to report. 


It is worth noting that on March 1st, 2024, a federal court in Alabama found this reporting requirement unconstitutional. The ruling, however, was limited to just the plaintiffs in this case, not throwing out the entire law.  


Since Cardinal Services is not a tax or legal expert, we would need to refer you to someone like your accountant or CPA to fulfill your reporting requirements, be able to let you know that you are exempt, or even possibly to wait to see if the entire law is found unconstitutional. Cardinal understands that some accountants are already talking about FinCEN with their clients, and some are not. Also, there have been scams with third parties trying to get companies to sign up in an effort to obtain personal information. It’s best to talk with someone you trust!