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The US Treasury’s Financial Crimes Enforcement Network (FinCEN) on 29 September issued a final rule implementing the Corporate Transparency Act’s (CTA’s) beneficial ownership information (BOI) reporting provisions. CTA, enacted in January 2021, targets tax fraud, terrorism, and money laundering by requiring US-formed corporations and limited liability companies (LLCs) and certain foreign-owned entities doing business in the United States to report to FinCEN certain information about their beneficial owners.

For many years prior to passage of CTA, several key policy makers on Capitol Hill had focused on selective cases of the use of beneficially owned assets in certain tax planning transactions. That focus continues with the implementation of the legislation.  

The final BOI reporting rule is effective beginning 1 January 2024. Reporting companies created or registered before 1 January 2024, will have until 1 January 2025 to file initial reports, while reporting companies created or registered after 1 January 2024, will have 30 days after receiving notice of their creation or registration to file initial reports.