Congress Enacts Corporate Transparency Act Requiring Corporations, Limited Liability Companies and Similar Entities to Disclose Beneficial Ownership Information
https://www.natlawreview.com/articl...-act-requiring-corporations-limited-liability
- The Act requires Reporting Companies to disclose to the Financial Crimes Enforcement Network ("FinCEN") of the US Department of the Treasury the below personal information of the beneficial owners of such Reporting Companies. Such disclosure is required to be made through completion of a beneficial ownership statement that is filed at the time of formation (or, if the entity was formed prior to the passage of the Act, within two years after the effective date of the issuance of final regulations for the Act) containing the following information of the applicable beneficial owner(s):
- Full legal name;
- Current residential or business street address;
- Date of birth; and
- Identification number (such as a driver's license or passport number).
The FinCEN may, upon request, disclose such information to:
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- a foreign central authority of competent authority, under an international treaty, agreement or convention, or an official request made by law enforcement, judicial or prosecutorial authorities in a foreign country when no treaty, agreement or convention is available;
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Finally, the Act prohibits the issuance of a certificate in bearer form evidencing either whole or fractional interest in any corporation, limited liability company, or other similar entity formed under the laws of any state or Indian tribe.
Any party that files an application for the formation of a Reporting Company that intentionally fails to comply with the Act will be liable for fines of no more than $500 for each day that there is a willful failure to report complete beneficial ownership information, and such parties may be subject to aggregate fines of up to $10,000 or a prison term of up to two years. Attorneys helping with corporate-registration paperwork on behalf of a client shall be included as parties subject to penalty, if they violate the Act.
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