New Requirement For Most Businesses Beginning January 1, 2024

Beneficial ownership information has become a focal point in the realm of business regulation, particularly with the enactment of the Corporate Transparency Act in 2021. This act introduces a new reporting requirement aimed at enhancing transparency and combating financial crimes facilitated through opaque ownership structures, such as shell companies. Here are some of most important information that could help clarify some of your questions. 

What is Beneficial Ownership Information?

Beneficial ownership information refers to key identifying details about individuals who directly or indirectly own or control a company. This information helps to shed light on the true beneficiaries and controllers behind corporate entities, making it harder for illicit actors to conceal their activities.

Reporting to the U.S. Department of the Treasury

Under the Corporate Transparency Act, companies are required to report beneficial ownership information to the U.S. Department of the Treasury. This regulatory measure is part of broader government efforts to curb money laundering, terrorist financing, and other illicit financial activities by increasing transparency and accountability in corporate ownership structures.

Access to Beneficial Ownership Information

Authorized entities, including Federal, State, local, and Tribal officials, as well as certain foreign officials through designated U.S. government agencies, have access to beneficial ownership information. Financial institutions may also access this information in specific circumstances, subject to regulatory oversight and with the consent of the reporting company. Your tax advisor should certainly be able to provide this information as well.

If you need assistance understanding or reporting digital asset transactions, please reach out to us for expert guidance.