Introduction of Corporate Transparency Registry in the US

The US. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has initiated the acceptance of reports containing beneficial ownership information. This action aligns with the bipartisan Corporate Transparency Act, implemented in 2021 to combat illicit financial activities, mandating companies operating in the U.S. to disclose details about their ultimate owners or controllers.

Janet L. Yellen, Secretary of the Treasury, remarked, “The introduction of the U.S. beneficial ownership registry is a monumental stride towards safeguarding our economic and national security. Corporate anonymity facilitates money laundering, terrorism, and corruption, disadvantaging law-abiding small businesses. Establishing a centralized database of beneficial ownership data will address vulnerabilities in our financial system and combat illicit finance.”

Filing is uncomplicated, secure, and cost-free. Reporting companies must adhere to specific deadlines:

For existing companies: Reporting entities established or registered before January 1, 2024, must file by January 1, 2025. For newly established or registered companies: Entities formed or registered in 2024 have 90 days from the date of receiving official or public notification of their company’s establishment or registration effectiveness. Beneficial ownership reporting is not an annual obligation and requires submission only once, except for updates or corrections. Reporting companies must furnish four pieces of information about each beneficial owner: name, date of birth, address, and identification number and issuer from a valid form of identification. Additionally, the company must provide its name(s) and address. Companies formed on or after January 1, 2024, must also submit details about the individuals who founded the company.

FinCEN is dedicated to supporting small businesses by simplifying the filing process. The FinCEN Small Entity Compliance Guide offers comprehensive guidance in straightforward language.

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