The U.S. Corporate Transparency Act (CTA) is a sweeping new regulation that will affect numerous U.S. and foreign companies. The purpose of the law is to require companies to disclose their beneficial ownership to aid the federal government of the United States in its efforts to identify individuals who use the anonymity provided by various corporate structures to engage in illegal activities. Companies, their owners, and their senior management must be aware of the law and its complex and difficult-to-navigate requirements. According to a recent survey, most businesses are not.

Effective 1 January 2024, U.S. entities created through the filing of a document with a state government and foreign entities registering to do business in the United States through the filing of a document with a state government are required to submit company information, beneficial owner information and company applicant information to FinCEN.  In a recently published article, Perry F. Sofferman explores the CTA’s requirements and its penalties in case of non-compliance.