United States: Beneficial Ownership Reporting, Part III

Tax news and developments October 2022

In brief

On 29 September 2022, FinCEN released the final regulations regarding Beneficial Ownership Information Reporting Requirements (“Final Regulations“) which implement the beneficial ownership information reporting provisions of the Corporate Transparency Act (CTA). In our prior client alerts, Updates on Beneficial Ownership Reporting in the United States and Beneficial Ownership Reporting, Part II, we discussed the implications of the CTA and the Proposed Regulations. Here, we summarize the Final Regulations and draw special attention to the modifications that FinCEN made to the Proposed Regulations.


Background

On 29 September 2022, the Financial Crimes Enforcement Network (FinCEN) of the US Department of the Treasury (“Treasury“) released the final regulations regarding Beneficial Ownership Information Reporting Requirements (“Final Regulations“), which implement the beneficial ownership information reporting provisions of the Corporate Transparency Act (CTA). The CTA was passed in January 2021 and requires “Reporting Companies” to report to “FinCEN” information regarding the Reporting Company’s “Beneficial Owners” and “Company Applicants”.

The Final Regulations largely track the earlier proposed regulations issued by FinCEN on 8 December 2021 (“Proposed Regulations“) but include several changes regarding “Company Applicants” and the timing of reports that could be welcomed by businesses. The Final Regulations are effective 1 January 2024.

In our prior client alerts, Updates on Beneficial Ownership Reporting in the United States and Beneficial Ownership Reporting, Part II, we discussed the implications of the CTA and the Proposed Regulations. Below we summarize the Final Regulations and draw special attention to the modifications that FinCEN made to the Proposed Regulations.

Click here to access the full alert.

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