IMPORTANT UPDATE
New Mandate: Corporate Transparency Act
Millions of U.S. small businesses entered a new era of transparency on January 1, 2024, with the implementation of the Corporate Transparency Act (CTA).
This act mandates the reporting of beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), aiming to improve financial transparency and combat illicit activities. While new business entities are required to report immediately, existing businesses have until January 1, 2025, to comply with the reporting requirements.
All businesses are required to comply with the new rule by January 2025. Read the full notification.
What is the CTA and why does it matter?
The CTA aims to combat money laundering, terrorism financing, and other financial crimes by creating a national database of beneficial owners – individuals who ultimately control or benefit from a company, even if they’re not listed as owners on official documents. This transparency allows law enforcement to track down criminals and their hidden assets, disrupting their operations and protecting our financial system. The CTA requires companies, except for a few exemptions, to identify and report these individuals to the Financial Crimes Enforcement Network (FinCEN).
It’s important to note that the CTA doesn’t make beneficial ownership information public. It’s kept secure by FinCEN and only accessible to authorized law enforcement and intelligence agencies for investigations.
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Should you have any questions regarding your current coverage or want further information on these points, Basin Pacific Insurance is here for you. Contact us today at [email protected] and your agent will be in touch shortly.
Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Please consult with an attorney for legal guidance specific to your situation.