United States: Understand Your Obligations Under The Corporate Transparency Act

The Corporate Transparency Act ("CTA"), which came into force on 1 January 2024, brings the US into a new era of beneficial ownership information ("BOI") compliance, in line with international standards, to combat money laundering and terrorist financing. Complex new disclosure requirements have been introduced for both domestic and overseas entities registered to do business in the US.

Maples Group Corporate Transparency Act ("CTA") Compliance Tool

To assist our clients in ascertaining the steps required for compliance with the CTA in various scenarios, we have created a CTA Compliance Tool. Simply follow the steps in the form to begin. The online tool will provide information about the required reporting obligations.

Or click here to access the Maples Group CTA Compliance Tool

This analysis and the Maples Group CTA Compliance Tool does not constitute legal advice. Comprehensive discussions should be held with US counsel to determine the full extent of compliance for individual situations.

Investment managers, industry stakeholders and organisations engaged in entity management should now fully understand their obligations under the CTA. Under the legislation, an entity formed in the US or registered to do business in the US by filing a document with a secretary of state or similar office, that doesn't fall into one of the 23 exemptions, is required to submit a BOI Report to the US Treasury's Financial Crimes Enforcement Network (FinCEN).

Following a recent amendment to the rule, domestic or foreign entities created or registered to do business in the US after the effective date of 1 January 2024 and before 1 January 2025, now have 90 days to file their initial BOI Report with FinCEN. Entities formed or registered after 1 January 2025 will have 30 days to file their initial report. All entities formed prior to 1 January 2024 will have one calendar year to file their initial BOI Reports.

Individuals or entities that fail to provide the required information will be liable for a civil penalty of up to US$500 for each day a violation continues and may be fined up to US$10,000 and imprisoned up to two years for a criminal violation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.