Please see the Alert from our member Holland & Knight regarding the Notice of Proposed Rulemaking (NPRM) for the Corporate Transparency Act (CTA) issued by FinCEN on December 7th. LARA will be meeting in January and, after an in-depth analysis, submitting a comment letter to FinCEN.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released proposed regulations on Dec. 7, 2021, seeking to implement the “beneficial ownership information” (BOI) requirement of the Corporate Transparency Act (CTA), which was passed by Congress as part of the Anti-Money Laundering Act of 2020 (AMLA 2020). FinCEN expects that the proposed regulations will help address the lack of BOI that the government deems “critical for money laundering investigations” and bring the U.S. into alignment with international anti-money laundering/combatting the financing of terrorism (AML/CFT) standards. It also seeks to clarify, through these proposed regulations, various ambiguities within the CTA.
This alert covers some of the key components of the Notice of Proposed Rulemaking (NPRM), namely who must file a report, what constitutes beneficial ownership, what information must be disclosed in a BOI report, and when the information must be reported.