On January 1, 2024, the Corporate Transparency Act (CTA) became effective. It affects millions of small businesses across the United States. This Act requires U.S. and foreign entities to submit their individual beneficial ownership information (BOI) to the Financial Crimes Enforcement Network of the U.S. Department of Treasury (FinCEN). It requires companies to disclose information regarding the individuals who own or control a company. Companies in existence prior to January 1, 2024, must file their reports by January 1, 2025. It was hoped that this Act would protect U.S. national security interests, would help to stop money laundering, and would also help to track the flow of illicit money. On March 4, 2024, a U.S. District Judge in Alabama ruled that the Act was unconstitutional in a case being held before the court. This ruling only applies to that specific case, however, it will be interesting to watch what other cases will be filed against this new Act in upcoming months. Watch the news for further updates.
Categorized in: Legal Procedure
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