The Corporate Transparency Act – An Overview of FinCEN’s Beneficial Ownership Reporting Requirements and Approaching Compliance Deadline
On September 30, 2022, FinCEN published its final rule implementing the beneficial ownership information (BOI) reporting requirements of the Corporate Transparency Act (CTA), enacted by Congress as part of the Anti-Money Laundering Act of 2020. The rules will require, for the first time under federal law, that certain U.S. legal entities and foreign entities registered to do business in the United States report certain information about themselves, their beneficial owners and company applicants.
In our latest Client Alert, our Investment Funds & Advisers lawyers and Corporate lawyers – Brian Forman, Jess Gorski, David LaGalia, Randi Mason, Tracy Sigal and Michael Wasenius – provide an overview of FinCEN’s Beneficial Ownership Reporting Requirements and approaching compliance deadline. They explain what defines a “reporting company” under the CTA, what entities are exempt from the definition of “reporting company,” what investment advisers and private funds need to know, what needs to be disclosed to FinCEN, ongoing reporting requirements and much more.
Both existing entities and new entities formed in 2024 will need to develop processes to address BOI reporting requirements. Existing businesses should review organizational charts and individuals should review their controlled entities in order to determine if an exemption is available, prior to the January 1, 2025 reporting deadline. Entities formed in 2024 should be mindful of the same considerations upon formation, given the requirement to report within 90 days of formation.
The Morrison Cohen Investment Funds & Advisers and Corporate teams are available to answer any questions regarding the CTA and provide counsel for entities to help make determinations regarding exemptions and beneficial owners.
For more details regarding this legislation, see our Client Alert below.
Contacts
- Brian R. Forman Partner & Chair, Investment Funds and Advisers
- bforman@morrisoncohen.com
- David P. LaGalia Partner & Co-Chair, Corporate; Co-Chair, Family Office Group
- dlagalia@morrisoncohen.com
- Randi Mason Partner & Co-Chair, Corporate
- rmason@morrisoncohen.com
- Tracy Sigal Counsel
- tsigal@morrisoncohen.com
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