Passed in January 2021 after a decade of congressional efforts, this new federal law provides a tool for national security, intelligence, and law enforcement agencies to counter money laundering, the financing of terrorism, and other illicit activity by eliminating the use of anonymous shell companies.

All U.S. business entities will be required to report information about its owners to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

The law takes effect January 1, 2024. Use this link to jump to my blog outlining what every business owner needs to know about Reporting Companies (and the exceptions), Beneficial Owners, and Company Applicants. Also included is information about filing deadlines, penalties for non-compliance, and applying for FinCEN Identifiers. 

How I can assist

The CTA places significant obligations on small businesses. I can help you understand who is considered a Beneficial Owner under the new law – whether an actual owner or a person with substantial control over the business operations. I can explain the requirements and work with you to create a compliance plan to ensure that your current and future owners and officers fulfill their obligations as well.

You will want to consider adding CTA provisions to the following company documentation:

• Governing documents, such as Bylaws and Operating Agreements
• Shareholder Agreements
• Executive Employment Agreements
• Purchase/Sale Agreements
• Buy/Sell Agreements

Ensure that your company has the information it needs to file its Beneficial Owner Information reports now and in the future. Contact the Law Office of Wendy Anderson to discuss what’s needed for your specific situation.

Please note that the firm does not file the Beneficial Owner Information reports with FinCEN.