More Federal Red Tape: Disclosing Corporate Ownership Details Under the Corporate Transparency Act

The Corporate Transparency Act (CTA), recently passed by the U.S. Congress to combat money laundering and criminal activities, imposes stringent reporting—disclosure—requirements on certain businesses, termed "Reporting Companies." Under the CTA, Reporting Companies must disclose details about their owners—formally known as beneficial ownership information (BOI)— to FinCEN, a bureau of the United States Department of the Treasury. Non-compliance with the CTA can lead to severe civil and criminal penalties, including imprisonment for up to two years.