In 2019, the United States enacted the Corporate Transparency Act, requiring most legal entities registered in the U.S. to disclose information about their beneficial owners. This measure aims to enhance business transparency and combat financial crimes.
What Does the Law Require?
- Filing reports with FinCEN – the U.S. Financial Crimes Enforcement Network.
- Creating a non-public database accessible only to authorized entities.
- Reporting deadlines:
1. For companies registered before 2024, reports must be submitted by January 1, 2025.
2. For companies established in 2024, reports are due within 90 days of registration.
Who Must File a Report?
The law applies to most legal entities, but certain categories are exempt. These include:
- Banks, insurance companies, accounting firms.
- Nonprofit organizations with tax-exempt status.
- Inactive companies that meet specific criteria.
A full list of exemptions is available in the FAQ FinCEN.
Penalties for Non-Compliance
- Fines: $500 per day of delay (up to $10,000 total).
- Criminal liability: Intentional non-compliance may lead to imprisonment.
How to File a Report?
Reports can be filed through the official FinCEN portal: boiefiling.fincen.gov/fileboir. You can submit the report via a PDF form or the online platform. The process is relatively straightforward and can be completed independently.