The Corporate Transparency Act (CTA) is US federal legislation requiring most companies to report their beneficial owners to FinCEN.
Key Requirements
| Requirement | Detail |
|---|---|
| Who reports | Most US corporations and LLCs (reporting companies) |
| What’s reported | Beneficial ownership information (BOI) |
| Where filed | FinCEN’s BOI reporting system |
| When due | Within 90 days of formation (new companies) or by deadline (existing) |
Purpose
The CTA aims to:
- End anonymous shell companies
- Combat money laundering and terrorist financing
- Provide law enforcement access to ownership data
- Align US with international FATF standards
23 Exemptions
Large, regulated, or already-transparent entities are exempt, including:
- Banks and credit unions
- SEC registrants
- Insurance companies
- Tax-exempt organizations
- Companies with >20 employees, >$5M revenue, and US physical presence
CTA and KYB
For KYB, the CTA:
- Creates a federal beneficial ownership database
- Standardizes UBO disclosure requirements
- May eventually provide verification access for financial institutions
For comprehensive coverage, see: Corporate Transparency Act
Related: BOI | Reporting Company | FinCEN | UBO