Corporate Transparency Act Update

Under the 2021 Corporate Transparency Act which aims to combat money laundering and other illicit financial activity, most incorporated businesses must disclose their beneficial owners to the Treasury Department’s Financial Crimes Enforcement Network. The law defines a beneficial owner as any individual who exercises substantial control over a company or owns or controls at least 25% of a company. While most companies were required to file with FinCEN by Jan. 13 of this year, the law’s enforcement is on hold amid legal challenges. The Supreme Court on Jan. 23 lifted a nationwide injunction on the law, but an injunction issued by a federal court in a separate case remains in effect. The federal government is appealing that ruling.

Please see the latest FinCEN alerts on Beneficial Ownership Information at https://www.fincen.gov/boi.