Start your journey to success with Angularis for entity setup and management!
Start your journey to success with Angularis for entity setup and management!
The date is approaching fast and Angularis is ready to work with you on the analyses and proper filings of the Beneficial Owner Information.
Contact Angularis for assistance and guidance!
DaysDays
HrsHours
MinsMinutes
SecsSeconds
Contact Angularis for the setup of the US entity and proper filing of the Beneficial Owner Information
This section is provided for informational purposes only and does not constitute legal advice to any specific person or entity. Complex assessments often have to be made under the Corporate Transparency Act (“Act”), and the rules under the Act change frequently. Accordingly, the contents of this section may become inaccurate over time in light of subsequent developments, and in any case, they may not reflect the specifics of individual situations. For all these reasons, a qualified attorney should be consulted in connection with compliance obligations under the Act.
FinCEN Issues Final Rule Regarding Access to Beneficial Ownership Information
Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) has issued a final rule that establishes the framework for access to and protection of Beneficial Ownership Information (“BOI”). The rule requires reporting companies to report to FinCEN within prescribed time periods information about themselves, as well as information about individuals who are beneficial owners of the reporting company. The BOI will provide essential information to the law enforcement, intelligence, and national security professionals working to protect U.S. economic and national security. Financial institutions will also have access under certain circumstances.
FinCEN is also issuing two interagency statements today to give banks and non-bank financial institutions guidance on the interplay between the final rule and FinCEN’s existing Customer Due Diligence Rule.
Sources:
- FinCEN Beneficial Ownership information: https://www.fincen.gov/boi
· News release: https://www.fincen.gov/news/news-releases/fincen-issues-final-rule-regarding-access-beneficial-ownership-information
· Fact Sheet: https://www.fincen.gov/news/news-releases/fact-sheet-beneficial-ownership-information-access-and-safeguards-final-rule
The Corporate Transparency Act (“CTA”) is a law that was passed in 2021 to enhance transparency in entity structures and ownership to combat money laundering, tax fraud, and other illicit activities.
The CTA requires certain entities in the United States to report information about their Beneficial Owners, i.e., the individuals who ultimately own or control the entity, to the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Department of the Treasury.
The CTA aims to prevent the misuse of anonymous shell companies for criminal purposes and to assist law enforcement in investigating and prosecuting financial crimes.
The CTA applies to Reporting Companies, which are defined as either domestic or foreign entities that are created or registered to do business in the United States.
Reporting Companies include corporations, limited liability companies, limited partnerships, limited liability partnerships, business trusts, and any other entity created by the filing of a document with a Secretary of State, Indian Tribe or a similar office.
There are 23 exemptions available to Reporting Companies, each with specific requirements.
Reporting Companies need to report the following information to FinCEN:
Reporting Companies need to report the following information about their Beneficial Owners to FinCEN:
A Beneficial Owner is an individual who, directly or indirectly, either has at least 25% ownership interests of the Reporting Company or exercises substantial control over the Reporting Company.
Reporting Companies formed after January 1, 2024 also need to report the same information about the Company Applicants, i.e., the individuals who file an application to form or register the Reporting Company.
Reporting Companies need to submit their reports to FinCEN electronically through a secure online portal that will be available by January 1, 2024.
Reporting Companies must update their reports within 30 calendar days of any change in their Beneficial Ownership information.
FinCEN can disclose the information to:
Civil Penalty - USD 591 per day in civil monetary penalties
Criminal Penalty - USD 10,000 fine, imprisonment of no more than 2 years, or both
No penalties for filing an inaccurate report provided the report is corrected within 90 calendar days of when it was filed.
The CTA is expected to provide several benefits, such as:
The CTA also poses some challenges, such as:
The Corporate Transparency Act is landmark legislation that aims to improve transparency in entity structures and ownership to combat money laundering, tax fraud, and other illicit activities.
The CTA requires certain companies in the United States to report information about their Beneficial Owners and Company Applicants to FinCEN, a bureau of the U.S. Department of the Treasury.
The CTA has potential benefits and challenges for both the public and private sectors, and its implementation and enforcement will depend on the issuance of the CTA regulations by FinCEN and the cooperation of the relevant stakeholders.
Copyright © 2021-2024 Angularis Global Services Inc. - All Rights Reserved.
Angularis Global Services Inc. does not provide tax, financial, and/or legal advice. Use of our services does not create an attorney-client relationship. Angularis Global Services Inc. is not acting as your attorney and does not review information you provide to us for legal accuracy or sufficiency.