Reported by Lindsay Brocki and Stella Lellos

By January 1, 2025, millions of existing businesses must have filed certain information with the Financial Crimes Enforcement Network (FinCEN) to remain in compliance with the Corporate Transparency Act (CTA). As this deadline approaches, concern is growing among lawmakers. During a House Financial Services Committee hearing, committee members highlighted that many businesses have “no idea” they are subject to the CTA’s reporting requirements.

FinCEN has estimated that over 30 million businesses will be subject to reporting requirements under the CTA. In an effort to spread awareness, FinCEN has hosted outreach events across the country to educate businesses of their obligations under the law. Despite these efforts, lawmakers emphasized that less than 3 million businesses had filed their requisite reports as of this summer. This “low percentage” of compliant businesses raised committee members’ eyebrows, particularly given the high fines for noncompliance — $500 for each day a business remains in violation.

While Treasury Secretary Janet Yellen assured committee members that FinCEN is “engaging in a very extensive outreach and education effort” to inform businesses about the CTA, experts maintain that general awareness of the law is lacking.

Read full report: https://www.jdsupra.com/legalnews/fincen-engages-in-outreach-as-cta-3217129/