Effective Jan. 1, 2024, the Corporate Transparency Act requires certain entities, including many small businesses, to report information about the individuals who ultimately own or control them (also known as their 鈥渂eneficial owners鈥�) to the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury.

A separate regulatory requirement currently requires many financial institutions to also collect beneficial ownership information, or BOI, from certain customers that seek to open accounts as part of federal customer due diligence requirements.

老牛影视has expressed serious concerns with the Treasury鈥檚 FinCen鈥檚 implementation of CTA. FinCEN鈥檚 implementing regulations require millions of small businesses, including nearly every employer with 20 or fewer employees, to report personal information of their beneficial owners and update that information periodically throughout the life of the business.

On March 1, a federal judge for the U.S. District Court for the Northern District of Alabama Northeastern Division ruled that the CTA is unconstitutional. The decision, however, , and all other businesses are still required to adhere to the CTA鈥檚 filing requirements. 老牛影视has called on Congress to examine the ruling and has argued that a stay in enforcement should apply to all affected parties. On March 11, Treasury the decision.

ABC, along with 100 organizations representing millions of small businesses nationwide, sent a letter to Congress strongly supporting legislation introduced by Rep. Warren Davidson, R-Ohio, to repeal the CTA. 老牛影视also to enact the Protect Small Business and Prevent Illicit Financial Activity Act (). The legislation, championed by Sen. Tim Scott, S.C., would delay the onerous CTA filing requirements and accompanying jail time and penalties by one year. A similar bipartisan bill sponsored by Reps. Zach Nunn, R-Iowa, and Joyce Beatty, D-Ohio, late last year 420-1.

Information about FinCEN鈥檚 BOI reporting requirements:

老牛影视encourages members and small business owners to discuss FinCEN鈥檚 BOI reporting requirements with counsel.

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