Reuters quoted Kevin Shepherd on the Corporate Transparency Act’s latest developments.
According to the article, the Corporate Transparency Act (CTA) requires certain entities to report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Originally intended to combat money laundering, the implementation of these reporting requirements has faced legal challenges, leading to a cycle of being put on hold and reinstated. Recently, the Treasury announced that it will not impose fines for non-compliance and will extend the reporting deadline while narrowing the focus to foreign entities.
Shepherd expressed concern about the evolving reporting standards. He commented, “The on again/off again rollout of the CTA reporting regulations has presented challenges on how to advise clients of their compliance obligations.” He noted that with revised reporting deadlines expected from FinCEN by March 21, “many practitioners are advising clients to await the new reporting deadlines before making any filings.”
According to Shepherd, “the revised reporting deadlines, coupled with a proposed narrowing of the reporting requirements to only foreign reporting companies, creates much uncertainty.”
Click here to access the article.