Liskow will post updates about the Corporate Transparency Act on this resource page.
Background
The U.S. Department of the Treasury's Financial Crimes Enforcement Network ("FinCEN") issued a final rule on September 29, 2022, implementing the beneficial ownership information reporting requirement of the Corporate Transparency Act (CTA), which was passed by Congress as part of the Anti-Money Laundering Act of 2020. In a nutshell, the final rule requires certain domestic and foreign entities to submit specified beneficial ownership to FinCEN.
Top Five Things Businesses Should Know About the Corporate Transparency Act
- Most businesses will be required to report to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department identifying information about the business and its owners.
- Businesses in existence before January 1, 2024, will have until January 1, 2025, to report, but businesses formed on or after January 1, 2024 will have 30 days (proposed to increase to 90 days) to report.
- Reporting will be done electronically through a secure filing system, and beneficial ownership information will be stored in a nonpublic database.
- Penalties for noncompliance can be severe.
- Businesses should consult with their legal counsel to help navigate the rules and exemptions relating to the CTA.
Corporate Transparency Act Resources
- Recent Liskow Updates
- The Treasury Department's Frequently Asked Questions Resource Page
- The Financial Crimes Enforcement Network of the Treasury Department Resource Page
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.