Since the Corporate Transparency Act (the “CTA”) went into effect on January 1, 2024, the Financial Crimes Enforcement Network (“FinCEN”) has periodically published FAQs in response to inquiries relating to this new law. While not modifying the statutes and regulations setting forth the CTA’s reporting obligations, the FAQs do offer clarification on the law’s application and the many compliance obligations.

By way of example, on April 18, 2024, FinCEN published 16 new FAQs and updated two existing FAQs, many of which relate to the CTA’s application to trusts. Specifically, one new FAQ addresses who is deemed a “beneficial owner” when ownership of a company is held through a trust. According to the FAQ, exercising substantial control over the reporting company through a trust arrangement or owning or controlling the ownership interests of a reporting company that are held in a trust brings owners within the ambit of the “beneficial owner” definition.

FinCEN’s website directs the public to submit inquiries through FinCEN’s Contact webpage. Please reach out to the Scopelitis Corporate Structuring and Strategy Practice regarding any questions concerning the CTA.