Clifford Chance

Corporate Transparency Act Imposes New Requirements On U.S. Businesses

December 2, 2022

Starting January 1, 2024, more than an estimated 32 million legal entities will be required to file certain information with the U.S. Government about their beneficial owners, as a requirement of the Corporate Transparency Act. The requirement is part of a broader effort to make it easier for law enforcement to investigate illicit activities and associated money laundering through the use of companies and other legal structures. Implementation of the rule may be relatively straightforward in some circumstances, but not in others, including certain situations involving REITs and other legal structures that may be used to hold real property.

This briefing provides an overview detailing the reporting obligations of the Act including a practical example.

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