How Your Company Can Prepare for the Corporate Transparency Act

By Ben Jumonville

With the Corporate Transparency Act (“CTA”) set to take effect on January 1, 2024, an estimated 32 million entities will soon be required to report personal information about their beneficial owners to the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Treasury Department. While the law is aimed at curbing money laundering, terrorist financing, and other financial crimes, its broad regulations will have a sweeping impact on many companies doing business in the U.S.

Companies subject to the CTA will need to file with FinCEN a Beneficial Ownership Information Report containing the full legal name, date of birth, current residential or business street address, and an image of an acceptable identification document for each beneficial owner.

Here are some steps that companies can take to prepare for the implementation of the new regulations: 

1. Review Your Corporate Structure

2. Create a Beneficial Ownership Register

3. Develop a Compliance Program

4. Ask for Help if Necessary

5. Stay Up to Date on Changes

In conclusion, the Corporate Transparency Act represents a significant change in U.S. corporate law, and companies should soon start preparing for its implementation. By following these steps, companies can ensure they are prepared to comply with the CTA when it becomes effective in 2024.

Visit LouisianaLawBlog.com to view the full article and other recent resources.