The US Treasury Department’s Financial Crimes Enforcement Network recently lifted its requirement for businesses to file beneficial ownership information reports by the end of the year, due to a nationwide injunction. The requirement was initially introduced in January 2023 as part of the Corporate Transparency Act, aimed at combating financial crime.
The law requires corporations and limited liability companies to disclose their owners and beneficiaries, with the aim of preventing money laundering, terrorism, and corruption. Treasury Secretary Janet Yellen has stated that corporate anonymity enables these illicit activities, harming American citizens and small businesses.
Since its introduction, the law has led to significant results, including 121 charges against individuals and the seizure of $101 million in investigations by the Homeland Security Investigations financial crime unit. The Secret Service has also made over 1,000 arrests tied to cybercrime, resulting in $257.5 million and $98.9 million in virtual asset seizures.
Before its suspension, businesses were required to file annual reports or submit information within 90 days of registration. Violating the requirements could result in civil penalties of up to $591 per day, as well as criminal penalties of up to two years imprisonment and fines of up to $10,000.
The reporting process was relatively straightforward, asking beneficial owners to provide their name, date of birth, address, and an identifying number from a nonexpired driver’s license or passport. Submissions were free on the Treasury Department’s website, although this is not possible while the injunction is in place.
Source: https://www.timesunion.com/business/article/businesses-submit-beneficial-ownership-19961672.php