Expert Interview: The Corporate Transparency Act – Practical Implications for Real Estate Investors

Summary

On January 1, 2024, the final rule implementing reporting of beneficial ownership information under the Corporate Transparency Act (the "CTA") will go into effect.[1] "Reporting companies" (i.e., entities that are subject to the reporting requirements that are formed or registered to do business in the U.S. and which do not fall under certain exemptions) will be required to report certain ownership and control information about the company to the Financial Crimes Enforcement Network ("FinCEN"). Failure to comply with the rule may result in civil and/or criminal penalties. For companies who have been conducting businesses in the United Kingdom or the European Union, ownership disclosures are not unusual. However, this is the first time the United States has implemented mandatory disclosure rules on private entities; so, for many, this is their first foray into the often confusing and overwhelming world of regulatory oversight.