Effective January 1, 2024, the Corporate Transparency Act (CTA) introduces new federal reporting requirements that may impact business owners and decision-makers. Please consider the following information as a general guide and not as legal advice.
In 2021, Congress passed the CTA as part of the Anti-Money Laundering Act of 2020 in the National Defense Authorization Act. The CTA is intended as a tool to support the U.S. Government’s efforts towards curbing money laundering and the concealment of assets through various types of U.S. entities.
The CTA’s effectiveness gave rise to a new obligation for many entities, foreign and domestic, to identify and report their beneficial owners to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Beneficial owners are those individuals or entities who exercise “substantial control” over a reporting entity. This includes individuals serving in C-suite and other executive officer positions. Reporting companies must also disclose information about who created the entity (“Applicant”) and report any change to previously reported information within a specified timeline.
Although each respective entity bears ultimate responsibility for complying with CTA reporting requirements, Ryan Swanson is available to be engaged to provide counsel as to whether your entity falls under the purview of FinCEN’s CTA oversight and the specifics of beneficial owner reporting obligations. Notably, beneficial owners may ease their reporting burden by obtaining a FinCEN ID. The FinCEN ID Application for Individuals can be found here.
Additional information regarding the CTA reporting requirements is available on FinCEN’s beneficial ownership information website: https://www.fincen.gov/boi.
Please note, our services related to the CTA are available upon your request for engagement. If you have any questions regarding the CTA and would like to engage our firm to discuss the specific implications to your business, please do not hesitate to contact any member of our Business group.
