November 11, 2023
By: Katelyn J. Dougherty, Esq.
The Corporate Transparency Act (CTA) mandates that entities disclose details about individuals who exercise significant control over their operations, known as beneficial owners, to the Financial Crimes Enforcement Network (FinCEN). This also includes updating any changes in this information. To be proactive, here is a sample Corporate Transparency Act (CTA) Compliance Checklist to help guide you.
- Understand the Scope and Requirements of the CTA
- Read and understand the Corporate Transparency Act.
- Identify if your organization falls under the purview of the CTA.
- Determine Beneficial Ownership
- Define who qualifies as a beneficial owner in your organization.
- Establish criteria for substantial control or significant influence within the organization.
- Gather Required Information
- Organization’s legal name and any DBA (Doing Business As) names.
- State of organization’s formation or registration.
- Tax Identification Number (TIN) of the organization.
- Identification numbers issued by the organization’s home state.
- Full legal names of all beneficial owners.
- Dates of birth of all beneficial owners.
- Residential addresses of all beneficial owners.
- Government-issued ID images (e.g., passports, driver’s licenses) of beneficial owners.
- Document and Report to FinCEN
- Prepare the documentation for submission to the Financial Crimes Enforcement Network (FinCEN).
- Ensure the accuracy and completeness of the information.
- Submit the required information to FinCEN in the prescribed format.
- Update Information
- Develop a system for updating beneficial ownership information.
- Report any changes in beneficial ownership or their information to FinCEN as they occur.
- Internal Policies and Training
- Create or update internal policies to comply with the CTA.
- Train relevant staff on CTA requirements and compliance procedures.
- Regular Review and Compliance Audits
- Schedule regular reviews of beneficial ownership information.
- Conduct internal audits to ensure regular compliance with the CTA.
- Consult Legal and Compliance Experts
- Seek advice from legal and compliance experts specializing in CTA requirements.
- Set alerts to stay informed about any amendments or updates to the CTA legislation.
- Record Keeping
- Maintain records of all submitted information and communications with FinCEN.
- Ensure secure and confidential storage of beneficial ownership information.
- Stay Informed
- Regularly check for updates and guidance from FinCEN and other regulatory bodies.
- Subscribe to newsletters or alerts related to corporate transparency and financial regulations.
Note: This checklist serves as a general framework and should be customized according to your organization’s unique needs and situations. For specialized guidance, always seek the expertise of legal and compliance experts.
Don’t have a business attorney? Get in touch with our team by emailing Info@harbourbusinesslaw.com.
This Blog was written by Founding Attorney, Katelyn Dougherty.
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