18259: Corporate Transparency Act − Beneficial Ownership Information

Effective January 1, 2024, the Corporate Transparency Act (CTA) will require certain types of companies, both domestic and foreign, that do business in the United States to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN).

BOI reports will require reporting companies to identify the entity, company applicants, and its beneficial owners that control at least 25% of the ownership interest including name, birthdate, address, and an image of an acceptable identification document.

The CTA authorizes FinCEN to collect BOI and disclose it to authorized government authorities and financial institutions, subject to effective safeguards and controls, as part of the Anti-Money Laundering Act of 2020 (AML Act) to help prevent the concealment of illicit money or other property in the United States.

FinCEN recently released a compliance guide and a list of FAQs to help entities prepare for this filing requirement. The FAQs indicate that a secure filing system is being developed, however, more detailed information about the reporting process is not yet available. Visit the FinCEN website for the latest updates

This article will also be updated as more information becomes available.