INSIDE COMPLIANCE

Among some of the big changes being made by the new Administration is the intention to no longer enforce the Corporate Transparency Act (CTA) against U.S. citizens and domestic reporting companies. The CTA, enacted back in 2021, was designed and implemented to enhance corporate accountability and combat financial crimes like money laundering, fraud, tax evasion, and the like. It requires certain businesses to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) with the goal of increasing transparency in corporate structures and organization. However, some recent developments have led to significant changes in the ability to enforce this act, sparking a lot of debate on the implications of (or without) the act.