CTA: Corporate Transparency Act

The Corporate Transparency Act (CTA) is US federal legislation requiring most companies to report their beneficial owners to FinCEN.

Key Requirements

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

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Related: BOI | Reporting Company | FinCEN | UBO