The US Corporate Transparency Act: Five Practical Issues For Entity Management

The Corporate Transparency Act ("CTA") is new legislation that requires information to be filed on individuals who are beneficial owners of most US entities and non-US entities formed or registered to do business in a US state. The legislation also requires information to be filed on individuals involved in forming an entity and those that own and control it (the senior officers).

The CTA represents a significant effort by US lawmakers to identify, on a major scale, the beneficial owners of businesses in the US, aligning with similar practice in other countries such as Canada, the UK and across the EU, generally bringing the US into compliance with international anti-money laundering standards in this area.