Reporting Beneficial Owners Under the Corporate Transparency Act

Harvard Law School Forum on Corporate Governance, the top online resource for discourse on corporate governance, recently published an article authored by Olshan white collar litigation partner Robert Appleton, corporate partner Jason Saltsberg and corporate associate Brian Roe entitled “Reporting Beneficial Owners Under the Corporate Transparency Act.” Effective on January 1, 2024, the U.S. Corporate Transparency Act (CTA) will require “reporting companies” (those non-public entities with fewer than 20 employees (with exceptions) to disclose to the U.S. government’s Financial Crimes Enforcement Network (FinCEN) details of their “beneficial owners” – those with substantial control over the entity and shareholders/owners of 25% or more of interest in the entity. With the CTA, Congress has passed one of the most significant and sweeping laws affecting LLCs and companies doing business in the United States – covering both domestic and foreign entities – in the most aggressive effort to date against illicit terrorist financing, fraud and money laundering. The article discusses the CTA’s reach, exceptions and disclosure obligations, which are retroactive and go well beyond any disclosure previously expected. Olshan is well positioned to advise on the CTA and whether reporting is required, and if so - what needs to be submitted and how.

Read the article in its entirety here.