The Corporate Transparency Act passed the House four years ago, and it became effective Jan 1, 2024. This bill generally addresses the disclosure of corporate ownership and the prevention of money laundering and the financing of terrorism. This division requires certain new and existing small corporations and limited liability companies to disclose information about their beneficial owners. That information is uploaded to FinCEN, which is the Department of the Treasury’s Financial Crimes Enforcement Network. If you are not compliant with the rules and regulations, the fines are so severe, that it is not conceivable that all small to medium businesses could ever comply with it, because the CTA is so intolerant for any business to adhere to its rules and regulations. This new law seems similar in scope to asset forfeiture laws already in place. If the paperwork is not done in a timely manner, assets can be frozen, seized, or all together confiscated through non-compliance.
