Last week, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury, posted its anxiously anticipated proposed regulations for the implementation of the Corporate Transparency Act (the CTA). The CTA became law on January 1, 2021, but does not take effect until FinCEN issues its final implementing regulations.
The CTA mandates the creation of a federal registry of beneficial ownership information for all U.S. and foreign entities that fall under its definition of a “reporting company” and are not included in one or more of the CTA’s several exemptions. FinCEN’s proposed regulations, among other things, provide details to the definition of who is a “beneficial owner” for reporting purposes, as well as compliance due dates for new and existing “reporting companies”.
FinCEN is seeking public comment on its proposed regulations by February 7, 2022. This is the second time FinCEN has solicited public comment regarding the creation of its CTA regulations. Last April, FinCEN issued its Advanced Notice of Proposed Rulemaking (ANPR), which included several pointed questions for all interested parties to comment on, including questions on whether the CTA’s definition of certain terms such as “beneficial owner” and “applicant” need further clarification. Law firms, private industries and trade organizations were among the many who submitted public comment to FinCEN on the ANPR.
Anyone who wishes to comment on FinCEN’s proposed regulations can do so on FinCEN’s website.
For background and detail on the CTA, please see COGENCY GLOBAL’s March 2021 webinar. We will continue to provide updates and future webinars on this important topic as it unfolds.