As part of ongoing regulatory obligations, the U.S. Department of the Treasury wants to remind you of the FinCEN (Financial Crimes Enforcement Network) reporting requirements that apply to certain business entities. Under the Corporate Transparency Act (CTA), many companies are required to report specific ownership and control information to FinCEN. This is part of a broader effort to combat money laundering, tax evasion, and other financial crimes.
Non-compliance with these regulations can lead to significant penalties. Therefore, we strongly recommend that you review your reporting obligations and ensure that your filings are accurate and up to date.
Please use the links and information below to ensure compliance and that your business meets the requirements.
The mission of the Financial Crimes Enforcement Network is to safeguard the financial system from illicit activity, counter money laundering and the financing of terrorism, and promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.
What is beneficial ownership information?
Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company. [Issued March 24, 2023]
Why do companies have to report beneficial ownership information to the U.S. Department of the Treasury?
In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.
Companies required to report are called reporting companies. There are two types of reporting companies:
- Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.
- Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that has registered to do business in the United States by the filing of a document with a secretary of state or any similar office.
To submit your business report using the e-filing system click HERE.
For more information, click here to go to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network webpage!