The Corporate Transparency Act (CTA), signed into law in the United States on January 1, 2021, represents a significant development in the country’s efforts to combat money laundering, terrorism financing, and other financial crimes by improving the collection of beneficial ownership information. The Act mandates the Financial Crimes Enforcement Network (FinCEN) to establish a comprehensive database of beneficial ownership information for certain legal entities. The newest addition within the CTA is the Reporting Rule, effective on January 1, 2024. The Act has shown several updates already and will continue to change as the business world changes.
How does the CTA affect you as a business owner?
Under the CTA and Reporting Rule, covered entities, including corporations, LLCs, and similar structures, must report information about their beneficial owners to FinCEN within a prescribed timeframe, including the beneficial owners of the reporting company and the company applicants. The beneficial owners are individuals who own or control a substantial stake in the entity, directly or indirectly. The reportable information will potentially include names, addresses, dates of birth, and unique identification numbers, such as Social Security numbers or passport numbers.
Let SightSpan help navigate this continually updated guidance. We can assist Accounting and Law firms, Banks, Payment Firms, MSBs, and Check Cashiers in meeting this new requirement. SightSpan offers a beneficial referral program for accounting and law firms to guide and protect your end clients’ responsibilities.
