MVA White Collar Defense, Investigations, and Regulatory Advice Blog

Most entities formed or registered to do business in the U.S. will, beginning January 1, 2024, be required to self-report beneficial ownership information to the U.S. Treasury’s Financial Crimes Enforcement Network (“FinCEN”). The new federal database, to be known as “BOSS” (Beneficial Ownership Secure System), is not yet online, but FinCEN on Friday, September 30 published the final regulations[1] implementing beneficial ownership information disclosure requirements pursuant to the Corporate Transparency Act (“CTA”)[2] passed by Congress in 2021 ...

Starting this year (2022), most private, domestic U.S. entities will be required to self-report to the U.S. Treasury’s Financial Crimes Enforcement Network (“FinCEN”) certain basic information about themselves, their beneficial owners and those individuals authorized to act on their behalf. These new requirements were enacted on January 1, 2021 as part of the Corporate Transparency Act (the “CTA”).[1]  They represent a major departure from the United States’ historic approach to business entity operation, as most private companies have not previously been subject to any beneficial ownership reporting requirements outside the context of a business relationship with a regulated financial institution.  The stated purpose of the CTA is to “discourage the use of shell corporations as a tool to disguise and move illicit funds,” part of a broader federal initiative to prevent and combat money laundering, terrorist financing and tax fraud.