Small businesses across the United States are facing a new regulatory requirement that many may not be aware of—the Corporate Transparency Act (CTA). Enacted as part of the National Defense Authorization Act for Fiscal Year 2021, the CTA aims to combat money laundering, tax fraud, and the financing of terrorism.
Effective as of the beginning of 2024, the CTA mandates that certain businesses must register with the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of the Treasury. Failure to comply with the act can result in penalties of up to $10,000 per violation and potential imprisonment.
