As legal challenges to the reporting rules for beneficial ownership information (BOI) wind their way through the courts, inflation adjustments again increased the civil monetary penalties for violating those rules.
The Financial Crimes Enforcement Network (FinCEN) included those penalties in its annual final rule, which provides the list of inflation adjustments of civil monetary penalties within FinCEN's jurisdiction.
Inflation increased the penalties for BOI reporting violations and the unauthorized disclosure or use of BOI to $606 a day from $591, effective Jan. 17. The original fine was $500.
The Corporate Transparency Act of 2021 established the penalties as an anti-money laundering initiative that mandates BOI reporting.
Those requirements are now mired in various court cases, including two in Texas where judges issued nationwide injunctions prohibiting the enforcement of the BOI rules.
The Supreme Court stayed the injunction in one case, but it remains in effect in the other, meaning FinCEN is not currently enforcing BOI reporting rules. Read more.