The Corporate Transparency Act (CTA), an anti-money laundering law, has resumed enforcement after a federal court lifted a preliminary injunction that had been in place since December 3. The CTA requires approximately 32.6 million small businesses to register personal information with the Financial Crimes Enforcement Network (FinCEN) by January 1, but FinCEN has extended the deadline until January 13.
The new filing deadline applies to companies created or registered before January 1, 2024, which previously had a deadline of January 1, 2025. Additionally, businesses created on or after September 4, 2024, that had a December 3-23 filing deadline now have until January 13, 2025.
Failure to register under the CTA can result in penalties of up to $591 per day for failure to file, as well as criminal penalties of up to two years imprisonment and a fine of up to $10,000. However, some businesses are exempt from the filing requirement, including publicly traded companies, nonprofits, and certain types of banks.
The CTA aims to combat financial crime and protect national security by requiring small businesses to disclose beneficial ownership information. The 5th U.S. Circuit Court of Appeals lifted the injunction, ruling that enforcement is necessary for the “public’s urgent interest in combating financial crime.”
Source: https://www.cbsnews.com/news/corporate-transparency-act-cta-fincen-ruling-injunction-what-it-means