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The Corporate Transparency Act: What Does It Mean for Your Business?

November 08, 2023
Client Alert

Starting Jan. 1, 2024, domestic and foreign entities registered to do business in the United States will need to comply with new beneficial ownership reporting requirements imposed under the Corporate Transparency Act (CTA). These requirements are designed to combat money laundering, terrorism financing and other illicit activities by mandating certain entities to disclose their beneficial owners.

The CTA represents a significant shift in the reporting requirements imposed on corporations and other entities, particularly small and midsized businesses, which historically have had minimal legal compliance reporting obligations.

What Is the CTA?
The CTA was enacted by Congress in 2021 as part of the White House’s United States Strategy on Countering Corruption.

The CTA directs the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to create a national registry of beneficial ownership information for certain entities (defined under the CTA as Reporting Companies). FinCEN issued a Final Ruleon Sept. 30, 2022, which implements the reporting requirements of the CTA. Read more...

Information contained in this publication should not be construed as legal advice or opinion or as a substitute for the advice of counsel. The articles by these authors may have first appeared in other publications. The content provided is for educational and informational purposes for the use of clients and others who may be interested in the subject matter. We recommend that readers seek specific advice from counsel about particular matters of interest.

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