Corporate Transparency Act

The CTA requires the Financial Crimes Enforcement Network (FinCEN) to establish a database maintaining companies' beneficial ownership information (BOI) and to promulgate three rules:

1. 1. the “Reporting Rule,” prescribing which entities need to file a BOI report, when and how to file the report, and what information the report must contain;
2. the “Access Rule,” governing what entities can access the BOI maintained by FinCEN and under what circumstances, along with the requisite security and confidentiality protocols that financial institutions must have in place; and
3. the “CDD Rule” (yet to be proposed), revising the existing 2016 CDD Rule governing financial institutions' customer due diligence (CDD) obligations to align with the CTAʼs requirements.

We advise clients on how to navigate this evolving regulatory landscape. Our experience includes assisting clients with:

• Determining whether, when, and how to file BOI reports, and, if so, what information must be included in them. (Reporting Guidance)
• Complying with the CTA when engaged in mergers and acquisitions (M&A) or forming joint ventures (JVs). (Entity Formation)
• Taking action to ensure financial institutions' AML programs (and related confidentiality and security protocols) are primed to seamlessly address and comply with impending changes to the CDD requirements.  (CDD Obligations)