The Corporate Transparency Act: Our New NormalThe Corporate Transparency Act: Our New Normal

Congress enacted the Corporate Transparency Act (CTA) as part of the National Defense Authorization Act for Fiscal Year 2021. Under the CTA, and the final regulations released Sept. 29, 2022, a “Reporting Company” must provide certain identifying information about its “Beneficial Owners” and certain individuals who helped form or register the Reporting Company (a “Company Applicant”). Failure to report can result in both civil and criminal penalties.¹ The CTA is intended to “help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity…”²

Collection and Use

Reporting Companies created before Jan. 1, 2024 will have until Jan. 1, 2025 to file their initial report with the Financial Crimes En...