The Corporate Transparency Act (CTA), effective January 1, 2024, has reshaped the regulatory landscape for small businesses in the U.S., and law firms are not exempt from its impact. While aimed at curbing illicit finance, the CTA for law firms introduces new responsibilities, raises ethical questions, and brings substantial penalties for non-compliance. Let us unpack what the CTA is, why it exists, the controversies it has sparked, and what it means for attorneys and their clients.
The Corporate Transparency Act is part of a larger anti-money laundering initiative included in the National Defense Authorization Act of 2021. It requires many corporations, limited liability companies (LLCs), and similar entities to file beneficial ownership information (BOI) with the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of the Treasury.
Download the eBook below to discover:
- How does the CTA affect law firms?
- What are the penalties for non-compliance?
- Where does the CTA stand now?
