Starting last January, the U.S. Department of Treasury’s Financial Crimes Enforcement Network has opened a portal for businesses to file their beneficial ownership information reports (BOI). The BOI is the U.S. Treasury’s efforts to prevent illegal activities and financial crimes tied to business entities that may be formed to hide personal liability and owner information—specifically, business owners and individuals who use shell companies to launder money, avoid taxes, and hide wealth. Most importantly, this helps to identify business owners who may defraud customers and employees. The U.S. Treasury is also undertaking an ambitious role to attempting to catch and curb sex traffickers who use shell companies to hide their identities.

Here's a closer look at what you should know about filing BOI reports for clients and how to determine whether a client’s business falls under the BOI exclusion list.