Beneficial Ownership Reporting: Insight into the New CTA Rule

There's a new rule in town, and it's all about making things clearer in the financial world. This rule says that certain businesses have to share some important info about the people who really own them. This includes names, addresses, and special ID details – a full picture of who's in charge.

Why is this happening? Well, it's claimed that this will limit financial crimes from occurring and make sure businesses are doing things the right way. If a business falls under these rules, it has to clearly state who has decision-making authority.

Here’s a link to additional information that may help you determine if you are required to report:  https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide.v1.1-FINAL.pdf

What Happens if I Don’t Report?:

If a business doesn't follow these new rules, it could get into some trouble. There are fines, $500.00 per violation, per day, with no limit! There are also criminal penalties of up to $10,000.00. This is attributable to anyone who either DIRECTLY or INDIRECTLY gives false or fraudulent information to FinCEN…. Maybe even your lawyers!

We are uncertain how long this new rule will last, or if they even have the manpower to enforce it. Regardless, for now, businesses need to abide by the new reporting requirements.