All articles tagged with #beneficial ownership
FinCEN issued an exceptive relief order that relaxes the requirement to identify and verify the beneficial owners of legal entity customers with every new account, limiting the checks to initial openings and cases where ownership information is called into question or required by risk‑based ongoing due diligence, while preserving all other AML/CFT obligations under the Bank Secrecy Act.
A U.S. District Court in Texas has blocked the enforcement of the Corporate Transparency Act's (CTA) beneficial ownership reporting requirements, leading FinCEN to state that such reports are now voluntary. The ruling, which deemed the CTA likely unconstitutional, has prompted the U.S. government to appeal. The CTA, aimed at preventing illicit activities through shell companies, requires detailed ownership information from businesses, but enforcement is currently halted nationwide due to the injunction. The case may ultimately be resolved by the Supreme Court.
A federal district court has issued a nationwide injunction against the enforcement of the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting rule, citing potential unconstitutionality. The court found the CTA likely exceeds Congress's powers under the Commerce and Necessary and Proper Clauses, as it regulates domestic rather than foreign affairs. The injunction, resulting from the case Texas Top Cop Shop, Inc. vs. Garland, halts the CTA's January 2025 reporting deadline, providing relief to small businesses. The government may appeal the decision.
A federal court in Texas has issued a nationwide preliminary injunction preventing the enforcement of the Corporate Transparency Act (CTA), which mandates U.S. companies to disclose beneficial ownership information to FinCEN. The court found that the plaintiffs, who argued that Congress overstepped its constitutional authority, are likely to succeed in their claims. This injunction halts the CTA's enforcement, including the January 2025 reporting deadline, pending further legal proceedings.
A Texas federal court has issued a nationwide preliminary injunction against the Corporate Transparency Act (CTA), which mandates US businesses to report stakeholder information to the Treasury Department. The court ruled that the CTA exceeds Congress's powers under the Commerce Clause, as it regulates entities regardless of commercial activity. The lawsuit, brought by Texas Top Cop Shop Inc. and others, argued that the CTA's requirements are unconstitutional. The government contends the law is necessary to combat illicit activities like money laundering.
U.S. Treasury Secretary Janet Yellen announced that over 100,000 small businesses have registered with the beneficial ownership database, but the numbers are lower than projected. The new reporting requirement, part of the 2021 Corporate Transparency Act, aims to disclose the true owners of companies to prevent illicit activities. The Treasury is pleased with the filing rate and expects numbers to grow as more businesses become aware of the rule. The rule will make the registry available to law enforcement to expedite investigations into activities such as drug trafficking and tax evasion.
Treasury Secretary Janet Yellen announced that 100,000 businesses have joined a new database collecting "beneficial ownership" information to unmask shell company owners, emphasizing the U.S.'s commitment to preventing illicit financial activities. The database, part of the Biden administration's push for corporate transparency, is a result of the bipartisan Corporate Transparency Act. Yellen also discussed upcoming real estate rules to increase transparency and address money laundering risks. Despite legal challenges, Yellen emphasized the benefits of corporate transparency in protecting national security and the economy.
Treasury Secretary Janet Yellen announced that 100,000 businesses have joined a new database collecting beneficial ownership information to unmask shell company owners, emphasizing the U.S.'s commitment to preventing the misuse of shell companies and money laundering. The database, established as part of the Corporate Transparency Act, requires most U.S. firms to report identifying information about their owners or controllers. Yellen also discussed upcoming real estate rules aimed at increasing transparency in property ownership, highlighting the importance of corporate transparency in protecting national security and the economy.
Treasury Secretary Janet Yellen announced that 100,000 businesses have joined a new database collecting "beneficial ownership" information to unmask shell company owners, emphasizing the U.S.'s commitment to preventing illicit financial activities. The database, part of the government's effort to increase corporate transparency, was launched as a result of the bipartisan Corporate Transparency Act. Yellen also discussed upcoming real estate rules aimed at increasing transparency in property transactions. Despite legal challenges, Yellen emphasized the importance of corporate transparency in protecting national security and economic interests.