New Corporate Transparency Act Disclosure Requirements Set for 2024
Highlights
The Corporate Transparency Act, will impose new significant reporting requirements for many U.S. companies starting in 2024
Many companies will be required to report and regularly update beneficial ownership information they may not currently possess
Companies will need to put in place policies and procedures and likely amend their governing documents to ensure compliance
In December 2020, Congress passed the Corporate Transparency Act (CTA) as part of the National Defense Authorization Act. According to the Financial Crimes Enforcement Network (FinCEN), the purpose of the CTA is to “better enable critical national security, intelligence, and law enforcement efforts to counter money laundering, the financing of terrorism, and other illicit activity” by creating a federal framework for reporting, storing, and disclosing beneficial ownership information of “reporting companies.”
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