The Corporate Transparency Act

A new bill The Corporate Transparency Act of 2017. [S.1717] was introduced in Congress that would require some corporations and limited liability companies (LLC) to report to the Financial Crimes Enforcement Network.

The bill require that not later than the beginning of fiscal year 2019, the Secretary of the Treasury shall issue regulations requiring each corporation and limited liability company formed in a State that does not have a formation system to file with the Financial Crimes Enforcement Network such information as the corporation or limited liability company would be required to provide the State if such State had a formation system.

A formation system is a state system where you have to register the business and provide Identification of beneficial owners; Updated information; there is Retention of information by the State; Provide information upon written requests or subpoena, etc.  This could impact Delaware, Wyoming and Nevada registrations.

The intent of this bill is to prevent wrongdoers from exploiting United States corporations and limited liability companies for criminal gain, to assist law enforcement in detecting, preventing, and punishing terrorism, money laundering, and other misconduct involving United States corporations and limited liability companies, and for other purposes.

This legislation is intended to help the U.S. meet it's obligation under the Financial Action Task Force on Money Laundering (FATF), a leading international anti-money laundering organization.

Penalties will range from civil fines of $10,000 to up to 3 years in prison.

Sources:
The Corporate Transparency Act of 2017. [S.1717]
Financial Crimes Enforcement Network

By Wendy Stewart