Regulatory update – United States

This regulatory framework is designed to ensure transparency and compliance within the dynamic landscape of financial regulations and combat financial crimes effectively.

The CTA mandates that reporting companies (including both domestic and foreign entities, unless exempted by the rule) to submit a comprehensive Beneficial Owner Information (BOI) report to the Financial Crimes Enforcement Network, US Treasury (FinCEN).

1️⃣ Reporting Obligations

The reporting process is facilitated through the Beneficial Ownership Secure System (BOSS). Reporting companies are accountable for actively monitoring and reporting any changes in their reported beneficial owner information, within a 30-day of the change taking effect.

2️⃣ Timeline

Entities incorporated before January 1, 2024, are granted a one-year window from that date to submit their initial Beneficial Owner Information (BOI) report. Conversely, entities created on or after January 1, 2024, are required to file their initial BOI report within 30 days of their formation. Following the submission of the initial report, there is no subsequent annual or quarterly filing obligation.

3️⃣ New rules & penalties

Failure to report changes can lead to significant penalties. CTA non-compliance carries fines up to USD 10,000 and imprisonment for up to two years for non-compliance or inaccurate information submission. Unauthorized disclosure of reported information carries even steeper penalties, reaching up to USD 250,000 in fines and imprisonment for up to five years.

4️⃣ Guiding your business through the change

As the deadline approaches, the need for comprehensive preparation becomes paramount. The Odyssey team is ready to guide and support your organization through the intricacies of CTA compliance.