Explaining The New Corporate Transparency Act

Beginning January 1, 2024, domestic entities and foreign entities registered to do business in the United States will need to comply with new information reporting requirements relating to their owners, officers, and controlling persons. The reporting requirements flow from the federal Corporate Transparency Act ("CTA"), a newly enacted law aimed at combating "money laundering, the financing of terrorism, and other illicit activity." The reporting requirements will likely have significant implications for a broad range of domestic and foreign entities and may cause such entities to undertake sweeping data-gathering efforts. Clients should be aware of the CTA and its requirements to determine its applicability to their businesses.