The federal Corporate Transparency Act (“CTA”) will become effective as of January 1, 2024. As a result, millions of entities will be required to comply with the CTA’s reporting requirements. The CTA was enacted to assist law enforcement in combatting money laundering, tax fraud, financing of terrorism and other illicit activity through anonymous shell and front companies.
The CTA requires domestic and foreign reporting companies that do not qualify for an exemption to (i) report certain beneficial ownership information (“BOI”) to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”); (ii) disclose information about who created the reporting company or registered it to do business in the U.S.; and (iii) report any change to previously-reported information within specified time periods. Compliance will require a fact-specific inquiry into applicable CTA requirements, company structures, equity ownership and control rights.
To learn more about the CTA and its requirements, click here.
