Important FinCEN Deadline Approaching For Oklahoma Cannabis Businesses
Cannabis businesses in Oklahoma face new reporting obligations under the Corporate Transparency Act (CTA) that could lead to hefty penalties if not met. Here’s what you need to know about FinCEN’s Beneficial Ownership Information Report (BOIR) requirement and how it impacts your business.
What is the Corporate Transparency Act?
The CTA is designed to combat illicit activities, such as money laundering and fraud, by requiring certain businesses to disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
BOIR Filing Requirement: Who Must File?
Under the CTA, most corporations, limited liability companies (LLCs) and similar entities operating in the United States must submit a BOIR. Oklahoma cannabis businesses are no exception and will likely need to comply unless they qualify for one of the 23 specific exemptions. Unfortunately, exemptions typically apply to heavily regulated entities or large operating companies—categories most cannabis businesses don’t fall under.
What’s Included in the Report: To comply, businesses must disclose details about each beneficial owner, including:
Full legal name
Date of birth
Residential address
A unique identifying number from an acceptable form of ID (such as a driver's license or passport)
Additionally, companies must report:
Legal and trade names
Formation state or jurisdiction
Principal place of business address
Taxpayer identification number
Critical Deadlines
Entities Formed Before January 1, 2024 must file their BOIR by January 1, 2025.
Entities Formed On or After January 1, 2024 have 90 days from formation to comply. Entities created on or after January 1, 2025, will have 30 days to file the BOIR.
Non-Compliance Comes With Heavy Penalties
Failure to meet the January 1, 2025, deadline could cost your cannabis business up to $500 per day in civil fines. More severe, willful violations carry the risk of criminal penalties, including fines of up to $10,000 and even imprisonment for up to two years.
How to Ensure Your Business is Compliant
Assess Your Obligation: Confirm whether your cannabis business needs to file a BOIR. Most Oklahoma cannabis companies will not be exempt.
Gather Essential Information: Collect the required details about your beneficial owners and entity specifics.
Submit Your Report: We can simplify and handle the filing process for you. As the number of beneficiaries increases, so can the complexity of meeting these requirements.
Cannabis businesses already face complex regulatory landscapes, and FinCEN’s requirements add another layer of compliance. Staying ahead of these obligations not only protects your business from financial and legal consequences but also ensures that your operations remain transparent and credible. Contact us today if you need help with your filing.
