UPDATED INFORMATION ISSUED ON CORPORATE TRANSPARENCY ACT
The Corporate Transparency Act (“CTA”) became effective January 1, 2024. The CTA is intended to address and guard against money laundering and other forms of illegal financing by requiring certain entities (primarily small and medium size businesses) to report “beneficial owner” information to the Financial Crimes Enforcement Network (“FinCEN”). The CTA authorizes FinCEN, a bureau of the U.S. Treasury Department, to collect, protect, and disclose this information to authorized governmental authorities and to financial institutions in certain circumstances.
Covered businesses will need to file a report electronically with this federal database. The reports require disclosure of certain information about the business and the individuals who own or control the business, referred to as Beneficial Ownership Information.
Recently, FinCEN updated its Beneficial Ownership Information Frequently Asked Questions to add new questions and answers and to add additional information about reporting companies and exemptions, beneficial owners and reporting requirements, among other topics.
A link to the updated Beneficial Ownership Information Frequently Asked Questions is located here. We intend to follow this post up with additional compliance information as it becomes available. In the meantime, if you have any questions about the CTA, please feel free to reach out to us.