The Corporate Transparency Act (“CTA”) was enacted by Congress on January 1, 2021, as part of the National Defense Authorization Act.
The CTA includes significant reforms to anti-money laundering laws and is intended to help prevent and combat money laundering, terrorist financing, corruption, and tax fraud. The CTA establishes a beneficial ownership reporting requirement for corporations, limited liability companies, and other similar entities formed or registered to do business in the United States.
On January 1, 2024, a new reporting requirement goes into effect that will require a Beneficial Ownership Information (BOI) Report to be filed with the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of Treasury.