Compliance Stuff

 On January 1, 2024, Congress enacted the Corporate Transparency Act (the “CTA”) as part of the Anti-Money Laundering Act of 2020 and its annual National Defense Authorization Act.  Every entity that meets the definition of a “reporting company” under the CTA and does not qualify for an exemption must file a beneficial ownership information report (a “BOI Report”) with the US Department of the Treasury's Financial Crimes Enforcement Network (“FinCEN”). Reporting companies include any entity that is created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe (this includes corporations, LLCs, and limited partnerships).  In most circumstances, a reporting company only has to file an initial BOI Report to comply with the CTA's reporting requirements. However, when the required information reported by an individual or reporting company changes after a BOI Report has been filed or when either discovers that the ...

The recently implemented Corporate Transparency Act (the “CTA”) requires that certain entities report information about themselves and their “beneficial ownership” to the Financial Crimes Enforcement Network of the United States Department of the Treasury (FinCEN). Congress passed the CTA as a part of the worldwide effort to combat money laundering, tax evasion, and other illicit activities. The reporting requirements of the CTA mainly apply to smaller entities seen as having the highest risk of abuse because they are not otherwise subject to oversight. While there have been legal challenges to the CTA , FinCEN has indicated that it will continue to enforce the CTA while these challenges are ongoing. This Q&A addresses the potential impact that the CTA may have on estates and trusts, and will be helpful to settlors, trustees, executors, and beneficiaries of trusts, as it outlines their basic duties under the CTA. Q: Do I need to be worried about the CTA and reporting information t...