By Zahra Smith, Tom Scriven and Tom Bealer, RPCK, 16 September 2024

The article discusses the Corporate Transparency Act (CTA), which mandates that certain U.S. companies disclose beneficial ownership information to combat financial crimes like tax evasion and money laundering. Companies formed before January 1, 2024, must file their reports by January 1, 2025, while newer entities have shorter deadlines. Non-compliance can result in civil and criminal penalties. Businesses are encouraged to assess their status and file on time.

For more details, visit RPCK’s article.

The CTA was enacted by congress, as a way to deter bad actors from using shell companies, or other opaque ownership structures, to prevent financial crimes including money-laundering, tax evasion and the circumvention of economic sanctions laws. To accomplish this goal, the CTA requires that certain companies (each a “Reporting Company”), report the personal information of their beneficial owners in a report (a “BOI Report”) that is to be filed with Financial Crimes Enforcement Network (“FinCEN”), the criminal enforcement arm of the Treasury Department. Beneficial owners, broadly, are those individuals who either directly or indirectly are deemed to exercise substantial control over the Reporting Company or who own or control 25% or more of the ownership interests of the Reporting Company. On January 1, 2024, FinCEN began accepting BOI Reports.

RPCK, September 2024