The Corporate Transparency Act (CTA) was a piece of legislation enacted in the United States as part of the National Defense Authorization Act for Fiscal Year 2021. The primary purpose of the Corporate Transparency Act is to address issues related to money laundering, terrorism financing, and other illicit financial activities by improving transparency in corporate ownership.

The key provisions of the Corporate Transparency Act include:

  1. Beneficial Ownership Reporting: Companies are required to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Beneficial owners are individuals who directly or indirectly own or control a significant interest in the company.
  2. FinCEN Database: The information collected by FinCEN is stored in a confidential, secure database. Law enforcement agencies and certain other entities, such as financial institutions, may have access to this information to help them in their efforts to combat money laundering and other financial crimes.
  3. Exemptions: Some entities are exempt from the reporting requirements, such as publicly traded companies, certain regulated entities, and small businesses that meet certain criteria.

The details of legislation can change, and new developments may occur. For the most current information on the Corporate Transparency Act or any other legal matter, check official government sources, legal databases, or consult with legal professionals, CPAs and EAs for the latest updates and interpretations.