"What You Need to Know about the Corporate Transparency Act," Association of Corporate Counsel's South Carolina Chapter Newsletter

Posted On April 10, 2024

In an article published in the Q1 edition of the Association of Corporate Counsel’s South Carolina Chapter Newsletter, Columbia-based attorney Lindsey Behnke provides an important overview of a recently enacted effort to curb money laundering and other illicit activities. The Corporate Transparency Act (CTA), which aims to increase transparency in business ownership, requires the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to establish and maintain a national registry of beneficial owners of entities that are deemed reporting companies.

The challenge for businesses and their legal departments lies in knowing if and when they must comply. In addition, Lindsey writes, “The overarching concerns include advising on the CTA’s requirements and balancing disclosure requirements with responsibilities and ethical obligations.”

In addition, “The CTA potentially subjects attorneys and other professionals who advise businesses and assist with their formation to new obligations and penalties. However, the exact implications for these professionals are still unclear. The overarching concerns include advising on the CTA’s requirements and balancing disclosure requirements with responsibilities and ethical obligations.”

You can access the complete article here to learn more about the CTA, who is required to comply, and details on the timeline.