On January 1, 2024, the Corporate Transparency Act ("CTA") came into effect in the USA approved by the US Congress in 2021. The CTA establishes significant changes in reporting information about Ultimate Beneficial Owners ("UBOs") of entities domiciled in the USA to the Financial Crimes Enforcement Network ("FinCEN").
The aim of this measure is to enhance transparency standards in corporate structures and strengthen the fight against tax evasion, money laundering, and terrorism financing.
If you have a direct or indirect stake of at least 25% in an entity incorporated and registered in the United States of America ("USA"), this matter may be of interest to you.
Assure International is here to assist you with this new requirement.
Here are some important details:
DEADLINES
The report for entities established before January 1, 2024, can be submitted within 1 year of the CTA coming into effect, i.e., until January 1, 2025.
For entities established from January 1, 2024, to January 1, 2025, in any American state, the deadline for submitting the CTA is 90 days from the date of their formation.
Companies formed from January 1, 2025, onwards have 30 days to submit the report with the data of their Beneficial Owners.
PENALTIES
Anyone who violates the reporting rules outlined in the CTA may be subject to civil penalties (a fine of USD 500.00 per day of non-compliance) and criminal penalties (a fine of USD 10,000.00, up to 2 years of imprisonment, or both).
REQUIRED INFORMATION FOR THE AMERICAN COMPANY
Full Company Name
Business Address
State of Formation
American identification number (EIN or ITIN)
REQUIRED INFORMATION FOR EACH BENEFICIAL OWNER FOR REGISTRATION
Full Name
Date of Birth
Complete Address
Submission of a colored copy of the identification document (Passport or US driver's license, if applicable)
Service fee: $300.00 (with up to 3 UBOs, an additional fee of $50.00 will be added for each extra UBO).
It's worth noting that there is a list of companies that may be exempt from filing this report, available on the FinCEN website: https://www.fincen.gov/boi/Reference-materials
We are available to answer any questions you may have.