FinCEN is authorized to enforce its rules and regulations designed to prevent money laundering and other illicit use of money. The agency can impose penalties, sanctions, and other measures to enforce compliance and maintain the integrity of financial oversight.

Thanks to the Corporate Transparency Act, starting Jan. 1, 2024, all companies created in the United States must complete a new form with the Treasury Department's Financial Crimes Enforcement Network, commonly known as FinCEN, unless one of 23 exceptions applies.

FinCEN's mission is to safeguard the financial system from illicit activity, counter money laundering and the financing of terrorism, and promote national security through strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.

Companies required to report are called reporting companies. There are two types of reporting companies: Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.