The CTA became law in January 2021 as part of the Anti-Money Laundering Act of 2020 in the National Defense Authorization Act for Fiscal Year 2021. The policy objectives of the CTA are to strengthen the anti-money laundering regime and combat financial crimes by increasing transparency and requiring business entities to report key information about the entity.
The reporting obligations took effect on January 1, 2024, and will require certain business entities in the United States and their “beneficial owners” (as defined in the statutes and related FinCEN guidance) to disclose detailed information to FinCEN. Information that is reported in response to the CTA will be maintained in a centralized database accessible to federal and state law enforcement agencies, as well as financial institutions subject to anti-money laundering regulations.
Speaker:
- Matt LeMaster, Partner, Seattle Office