Corporate Transparency Act

The Corporate Transparency Act (CTA), enacted in 2021, was introduced to combat financial crimes such as money laundering, tax fraud and other illicit activities.

Initially, the CTA required certain US-based companies to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). As of March 21, 2025, US citizens, domestic reporting companies or their beneficial owners are no longer required to report BOI under the CTA.

Moving forward, only foreign reporting companies will be obligated to comply with these reporting requirements. This change aims to reduce regulatory compliance burdens for US-based businesses while maintaining transparency for foreign entities operating in the United States.

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