Tag:FinCEN
The Corporate Transparency Act: Now Featuring Much Less Transparency
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.
Crypto Platforms Under Scrutiny by Various U.S. Agencies
Since the beginning of 2023, the cryptocurrency market has faced legal action from multiple U.S. agencies in efforts to control a sector that, until recently, mostly operated beyond the bounds of conventional financial regulation. As a result of the executive order issued by the Biden Administration in March 2022, various federal agencies examined the risk and benefits of cryptocurrencies and have issued official reports. These reports have led to coordinated action against the crypto market. The administration aims to “ensure that cryptocurrencies cannot undermine financial stability, to protect investors, and to hold bad actors accountable.” In their attempts to promote regulation, the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury, have acted against the crypto market on several fronts, frightening off bank allies, suing crypto firms for violating investor protection laws, and targeting exchanges connected to money laundering.