Is Your Company Compliant with the Corporate Transparency Act?
The Corporate Transparency Act (CTA) is a new piece of legislation that went into effect January 1, 2024, which is designed to enhance corporate transparency and combat financial crimes, such as money laundering and terrorist financing.
Nearly all companies must comply with the CTA, including small, privately held companies and LLC’s as of January 2024.
Publicly traded companies, most financial services providers and certain large entities are exempt.
Failure to comply can result in fines of $500 a day, up to a maximum of $10,000 AND up to two years in prison.
Discover If You’re CTA Compliant
At Catalyst Legal, we understand the importance of staying informed about regulatory changes that may affect your business operations. We serve as a comprehensive resource to help you navigate the complexities of the CTA and understand its implications for your organization.
Unveiling a New Era of Transparency for Business Owners
Under the CTA, certain businesses are required to disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), thereby enhancing transparency in corporate structures.
Beneficial Owners may include owners, board members, and C-Suite employees, even if they do not have an ownership stake to the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury.
The Financial Crimes Enforcement Network now allows beneficial owners to get a FinCEN number to be able to report. It is not required, but if beneficial owners do not get a FinCEN number they are required to supply photo identification when reporting.
