New Final Regulations on Reporting of Beneficial Ownership Explained

📝The new final regulations aim to enhance national security, prevent money laundering, and promote financial transparency.

💼Reporting requirements apply to both domestic and foreign reporting companies.

🕵️Entities must report beneficial owners who own at least 25% of the entity and those who exercise substantial control over the entity.

📅The general effective date for the reporting requirements is January 1, 2024.

❓There are exemptions for certain regulated entities, such as banks, credit unions, and tax-exempt organizations.

Who is required to report under the new regulations?

—Both domestic and foreign reporting companies are required to report beneficial ownership of closely held legal entities.

What is considered a closely held legal entity?

—Closely held legal entities include corporations, LLCs, partnerships, and trusts.

Who are considered beneficial owners?

—Beneficial owners include individuals who own at least 25% of the entity and those who exercise substantial control over the entity.

When do the reporting requirements take effect?

—The general effective date for the reporting requirements is January 1, 2024.

Are there any exemptions to the reporting requirements?

—Yes, certain regulated entities, such as banks, credit unions, and tax-exempt organizations, are exempt from the reporting requirements.

00:00Introduction of the video and the speakers.

01:00Overview of the new final regulations on reporting of beneficial ownership.

02:30Explanation of the reporting requirements for domestic and foreign reporting companies.

03:45Definition of closely held legal entities and their inclusion under the reporting requirements.

05:15Explanation of who qualifies as a beneficial owner under the regulations.

06:30Discussion of the effective date for the reporting requirements.

08:00Overview of exemptions for certain regulated entities.

09:30Conclusion and key takeaways from the video.