What Is a FinCEN ID and How Do You Get One—A Quick Guide

Under the original version of the Corporate Transparency Act (CTA) and enforcement regime, certain organizations (reporting companies) were required to report information on their beneficial owners and, in some cases, company applicants to the Financial Crimes Enforcement Network (FinCEN). To facilitate the beneficial ownership information (BOI) reporting process, individuals and reporting companies can request a unique identification number from FinCEN known as “FinCEN Identifier” or “FinCEN ID.”

In this article, we’ll address the question of “What is a FinCEN ID?” and explain the process of obtaining and maintaining one. Finally, we’ll explain how Harbor Compliance makes beneficial ownership information (BOI) reporting easy for organizations.

What Is a FinCEN ID? The Basics

A FinCEN ID is a unique 12-digit personal identification number issued primarily to individuals who act as beneficial owners and company applicants of reporting companies.

It’s important to note that obtaining a FinCEN ID is not mandatory. Instead, it’s used to expedite the beneficial ownership information reporting (BOIR) process by allowing reporting companies to include FinCEN IDs in their BOI reports instead of providing specific information about their beneficial owners or company applicants.

Using a FinCEN ID also reduces the time and effort it takes for individuals to submit their personal information to reporting companies they are associated with. Instead of providing all the details, such as name, address, and date of birth, a beneficial owner can simply give the reporting company their FinCEN ID so that it can file a BOI report faster.

A single individual can only receive one FinCEN ID, which cannot be changed once issued.

Like an individual, a reporting company can also apply for and receive a FinCEN ID. Under certain circumstances that we’ll outline later in this article, reporting companies can use a FinCEN Identifier when reporting multiple companies with the same beneficial owners. You can quickly determine whether a FinCEN ID belongs to an individual or organization by checking the first digit:

• IDs that start with “3” are issued to individuals.
• IDs that start with “2” are issued to reporting companies.

Who Needs a FinCEN ID?

As mentioned above, both individuals and reporting companies can request a FinCEN ID. However, it is most useful for individuals who serve as beneficial owners or company applicants of multiple entities as it saves them from providing all the necessary information to every reporting company they are associated with.

Apart from filing efficiency, FinCEN IDs can also help to mitigate privacy concerns. Rather than submitting their personal information repeatedly to each associated reporting company, beneficial owners and company applicants only need to provide the required details to FinCEN once and then use their FinCEN IDs for future filings.

Using a FinCEN ID also streamlines the BOI reporting process for reporting companies. Instead of entering all the required information about their beneficial owners and company applicants in their initial, corrected, or updated BOI reports, companies can simply include the individuals’ FinCEN IDs. When information for a FinCEN identifier is updated, the BOI reports where that FinCEN identifier appears are automatically updated.

FinCEN ID for Reporting Companies

The CTA includes a special reporting rule that allows reporting companies to submit a FinCEN ID and the full legal name of another reporting company in their BOI reports instead of disclosing the personal information of their beneficial owners. The reporting company that obtains a FinCEN ID for this purpose is typically known as the “intermediate entity.”

For this special reporting rule to apply, three conditions have to be met:

1. The intermediate entity has obtained a FinCEN ID and provided it to the reporting company filing the BOI report (filing entity).
2. The beneficial owners of the filing entity hold ownership interest in it through the intermediate entity.
3. The beneficial owners of the filing entity and the intermediate entity are the same persons.

How To Get a FinCEN ID

To obtain a FinCEN ID, you’ll need to provide some basic information to FinCEN by creating an account and completing the online FinCEN ID application. Below are the steps individuals have to take to apply for and get a FinCEN ID:

1. Go to the FinCEN ID portal—The first step is to visit FinCEN’s official application portal.
2. Enter all requested information—Enter all the required details, including your complete legal name, date of birth, residential and/or business address, unique identification number, and a picture of the government-issued document used for the unique identification number.
3. Avoid prohibited words—When preparing the application, it’s crucial to steer clear of any words explicitly prohibited by FinCEN. These include acronyms and terms like AKA, BDA, NA, and Same as Above.
4. Review and submit—Once done, review all your information and submit your application.

Other information, like your middle name, is not required but can be added to the application. Only valid, non-expired documents issued by an official authority, such as passports or driver’s licenses, can be used to verify a unique identification number. If you don’t have U.S.-based documents, a foreign passport is also acceptable.

Unlike individuals, reporting companies can request a FinCEN ID when filing their initial BOI reports by clicking on a checkbox on the online reporting page. If they want to obtain a FinCEN ID after submitting the initial report, they can choose to file an updated BOI report and click on the same checkbox before filing, even if there’s been no change in BOI details.

Maintaining a FinCEN ID

FinCEN ID holders are required to keep all the information they provided to obtain the identification up to date with FinCEN. Any changes or errors in their personal information must be reported and corrected within 30 calendar days of becoming aware of the discrepancy. For example, if your residential or business address changes, you’ll have to update it through the FinCEN application portal by logging into your FinCEN account.

The requirement to keep the FinCEN ID information current remains even after an individual is no longer a beneficial owner or a company applicant of a reporting company since there is currently no option to deactivate a redundant FinCEN ID.

Meanwhile, reporting companies holding FinCEN IDs are obligated to report any changes to their information within the same 30-day deadline by submitting either an updated or corrected BOI report, as applicable.

Harbor Compliance—Your Key to Effortless Beneficial Ownership Information Reporting (BOIR)

Staying compliant with the CTA and its BOI reporting provisions may seem straightforward, but it can consume precious time that you can dedicate to running your organization. To simplify the BOI reporting process and avoid fines and penalties, it’s a good idea to leverage the support of a professional service provider like Harbor Compliance.

Harbor Compliance’s BOI Reporting Service is specifically designed to support reporting companies throughout every step of the BOI reporting process, from collecting initial information to filing updated reports. We handle all the paperwork and minimize manual effort on your end, ensuring peace of mind and allowing you to focus on your core responsibilities.

Once you partner with us, we’ll start by collecting all your BOI details through our secure digital platform and use them to prepare and file the initial report with FinCEN on your behalf.

Apart from the initial filing, our service includes preparing and submitting up to four corrected and updated reports in a single calendar year to ensure you fully adhere to CTA’s reporting requirements.

Benefits of Harbor Compliance’s BOI Reporting Service

Here are the three key benefits of delegating your BOI reporting duties to Harbor Compliance:

1. Time savings—According to FinCEN, it can take up to three hours for companies to prepare a single BOI report. We can save you this time by handling the collection of necessary information, preparing the initial report, and submitting it to FinCEN on your behalf.
2. Automated notifications—We send automated periodical notifications to remind you to review information on your beneficial owners. If you find that some of the details have changed since filing the initial report, you’ll only have to send us the accurate information, and we’ll file an updated report.
3. Records Manager—A robust software solution that lets you centralize all your organizational records and ownership and leadership details to facilitate BOI reporting.

How To Order Harbor Compliance’s BOI Reporting Service

Here’s the process of ordering Harbor Compliance’s BOI Reporting Service:

1. Visit our simple signup wizard.
2. Choose a service option according to your needs:
   1. Single company
   2. Multiple entities
   3. A nonprofit firm not exempt under 501(c)
3. Provide details like your name, entity structure, and email address.
4. Proceed to checkout.

Additional Services by Harbor Compliance

Apart from BOI reporting, we assist organizations in meeting various state and regulatory requirements across the U.S. Refer to the table below to get an overview of our most popular solutions:

FinCEN ID FAQs

Below, we’ll answer some of the most commonly asked questions regarding FinCEN IDs. For more information, check out our FinCEN FAQ guide or Information Center.

Make BOI Reporting Easy With Harbor Compliance

If you’re looking to simplify all aspects of your BOI reporting, including managing your FinCEN IDs, consider outsourcing the entire process to Harbor Compliance by ordering our BOI Reporting Service.

To streamline and automate other compliance tasks, schedule a free demo to get an idea of how our platform can help your organization maintain good standing across the U.S. You can also get a FREE Harbor Compliance Score™ to get a picture of your current regulatory standing.