Reminder! Corporate Transparency Act
At PFSS, prioritizing customer satisfaction is our top commitment, and we strive to exceed expectations in our service. Additionally, we aim to serve as a valuable resource for all your industry inquiries, keeping you informed about any relevant changes that may impact your business. We are currently in the final testing phases of a system that we will be using to help you meet the reporting requirements of the Corporate Transparency Act (CTA). Whether you need a simple solution for a one-time filing or an enterprise-wide platform for multiple entities – we have you covered!
It’s essential to be aware of the Corporate Transparency Act, which will impose substantial reporting requirements on both U.S. companies and foreign entities conducting business in the U.S. The primary objective of the CTA is to thwart the use of U.S. LLCs, Corporations, and other business entities as clandestine shell companies for illicit activities.
Under the CTA, the responsibility for collecting information will shift from financial institutions to reporting companies. Strict penalties will be imposed for intentional non-compliance and unauthorized disclosures. This legislation aims to furnish law enforcement with crucial ownership details to combat terrorism, money laundering, and other misconduct facilitated through business entities. Starting January 1, 2024, non-exempt U.S. companies must report information about their Beneficial Owners (BO) and Company Applicants (CA) to the Financial Crimes Enforcement Network (FinCEN). For existing reporting companies established before January 1, 2024, a one-year grace period is provided to comply with the new regulations. Companies created on or after January 1, 2024, are required to file an initial report within 30 days of registration or formation. The Reporting Rule provides exemptions for twenty-three (23) specific entity types, as outlined in the Small Entity Compliance Guide by FinCEN. As we anticipate the development of the online system and the enforcement of legal requirements, we recommend that companies proactively assess their reporting obligations. To facilitate this process, refer to the Small Entity Compliance Guide and FAQs provided by FinCEN. If you receive any communication purportedly from FinCEN requesting information, exercise caution and refrain from responding, clicking on links, or scanning QR codes.
For any questions, please don’t hesitate to contact us at [email protected]. Your proactive engagement is vital in navigating these regulatory changes.
