Corporate Transparency Act (CTA) Are you in compliance?
By: David K. Olive
Make sure you’re on track! Assess your compliance status today and take the necessary steps to ensure you’re meeting all regulations. Don’t wait—secure your peace of mind now!
CTA Overview:
- Enacted: January 2021
- Purpose: Requires certain entities (e.g., corporations and limited liability companies) to disclose beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
Beneficial Ownership Reporting Requirements:
- Information to Report:
- Full legal name
- Date of birth
- Current residential or business address
- Unique identifying number from an acceptable identification document (e.g., passport, driver’s license)
- Definition of Beneficial Owner:
- Anyone with a 25% ownership interest in the company
- Any individual exercising “substantial control” over the company
Reporting Deadlines:
- New Entities: Must submit information to FinCEN at the time of entity formation.
- Existing Entities (before January 1, 2024): Must comply by the end of this calendar year.
Penalties for Noncompliance:
- Civil and Criminal Penalties: Potentially severe consequences for failing to meet reporting requirements.
Key Takeaway for Clients:
- Ensure compliance with CTA reporting requirements.
- Stay informed about developments to effectively navigate the evolving regulatory landscape.