IMPORTANT: CTA Deadline December 31, 2024!

Dear Clients

We are writing to inform you about the upcoming compliance requirements under the Corporate Transparency Act (CTA). As you may be aware, the CTA mandates that certain businesses report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This measure aims to enhance transparency and prevent illicit activities such as money laundering.

Key Points:

• Who Needs to Report: Businesses that are not exempt under the CTA must file a Beneficial Ownership Information (BOI) report. Exempt entities include publicly traded companies, banks, insurance companies, and certain large operating companies.
• Information Required: The report must include the names, dates of birth, addresses, and identification documents of each beneficial owner. Alternatively, a FinCEN ID can be used to protect personal information.
• Deadlines:
  • Businesses formed before January 1, 2024, must file their first report by January 1, 2025.
  • Businesses formed after January 1, 2024, have 90 days from the date of formation to file their first report.
• Penalties for Noncompliance: Failure to comply with the CTA can result in civil fines of up to $500 per day and criminal penalties of up to $10,000 and/or two years in prison.

For a detailed guide on how to comply with the CTA, please refer to our article here.

If you have any questions or need assistance with your compliance efforts, please do not hesitate to contact us.