Enacted by Congress on January 1, 2021, the Corporate Transparency Act (“CTA”) was created for the purpose of bringing the United States into compliance with international AML/CFT Standards by establishing a new framework for the reporting, maintenance, and disclosure of beneficial ownership. The CTA sets a clear federal standard for incorporation practices, protecting vital U.S. national security interests as well as interstate and foreign commerce.
The CTA is designed to provide essential information to the following agencies:
The Beneficial Ownership Information Report ("BOIR") application process is done in the following order and can be submitted simultaneously
FinCEN provides filers with the option to create and submit the BOIR in two ways:
By preparing a downloadable PDF for record-keeping purposes
OR
By directly filing online and receiving a transcript after submission.
The Corporate Transparency Act was passed to enhance transparency in entity structures and ownership to combat money laundering, tax fraud, and other illicit activities. Click the links below for more details.
The following questions are directed at and answered by FinCEN. The answers provided by FinCEN do not supplement or modify any obligations imposed by statute or regulation.
What is beneficial ownership information? Why do companies have to report BOI to the U.S Department of the Treasury? Under the CTA, who can access beneficial ownership information? When do I need to report my company’s BOI to FinCEN?
CLAS provides informational videos to help you navigate the complexities of the CTA. Watch and share this valuable content with your colleagues.
Related Articles
Explore insights from experts:
curated articles by leading
professionals.
Business Lawyers, the Corporate Transparency Act and New York State’s Response
Key Terms
Unlock essential CTA terminology
for a comprehensive understanding
right here.
CTA: Corporate Transparency Act
BOI: Beneficial Ownership Information
BSA: Bank Secrecy Act in place since 1970
CDD: Customer Due Diligence
FATF: Financial Action Task Force