The Corporate Transparency Act (CTA), a part of the Anti-Money Laundering Act of 2020, has ushered in significant requirements for specified Reporting Companies. Striding into effect in 2021, the act calls for these entities to report beneficial ownership information (BOI), and if created or registered on or after January 1, 2024, the information about any individual who directly files the document that creates the Reporting Company, otherwise referred to as the Company Applicant, to the U.S. Department of Treasury’s Financial Crimes Enforcement Network, or FinCEN.
This new directive from FinCEN outlines when and how Reporting Companies should use specific FinCEN Identifiers. Though the application of this will vary based on each company’s unique situation, this legislation has currency for all legal professionals working in significant corporations and law firms globally.
With the goal of reducing the veil of anonymity behind which illicit activities can occur, the CTA aims to strengthen the United States’ position in clamping down on financial crimes and reinforcing transparency in corporate entities’ operation.
You can read more about this significant development in the legal and corporate world at JD Supra, where the details are outlined by the legal experts at McGuireWoods LLP.