The Corporate Transparency Act (“CTA”) was enacted by Congress and took effect on January 1, 2024 to help prevent and combat money laundering, terrorist financing, corruption, and tax fraud. The CTA requires most small- to mid-sized businesses registered in the United States to file a beneficial ownership information report with the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of Treasury.

As the predominant professional association of business registries in the United States, IACA is uniquely situated to provide support and resources to jurisdictions navigating their role in the implementation of the CTA. Through your IACA membership, you have access to:

  • Collaborative discussions about and responses to FinCEN’s rulemaking activities;
  • Regular communications with FinCEN representatives;
  • An active community of jurisdictions sharing their experiences through the BOS Forum and IACA Office Hours; and
  • Notifications about emerging scams and schemes relating to beneficial ownership reporting.

Resources

FinCEN manages a dedicated Beneficial Ownership Information website that allows users to file reports and provides many helpful resources, including:

Scams and Schemes

The CTA requires businesses to report sensitive personal information to FinCEN. Bad actors seeking to steal business owners’ identities or make a profit from this free mandatory requirement have found many ways to mislead filers.

Mail solicitations

In this scheme, a third-party company sends official-looking notices charging exorbitant fees to businesses to obtain personal information or derive a profit. There is no guarantee that the third-party company will file the report on the business owners’ behalf as expected.

Spoof websites

Beneficial ownership information reports can only be filed online directly at FinCEN.gov/boi. Unfortunately, there are numerous websites designed to imitate the official website to trick filers into paying a fee and submitting sensitive information to bad actors.