New FinCEN Federal Regulations: What to Know

Bespoke clients, and those who place a high premium on privacy: If you wish to keep your personal information out of a national “Financial Crimes” database, it’s time to restructure your entities to find a reporting exemption.?

New FinCen federal regulations go into effect January 1, 2024 that dramatically impact the right to privacy for many individuals and families in the U.S.?

Here’s what you need to know:?

1. FinCEN’s new regulations dramatically endanger the right to privacy.
2. Regulations require collecting personal identifying information for individuals involved in common family wealth structures, including limited liability companies established to hold personal use property.
3. Regulations apply to “reporting companies,” further delineated as Domestic and Foreign Reporting Companies. It’s safe to assume virtually any company established by filing organizational documents with a Secretary of State of any U.S. state is subject to the new reporting requirements, even single member or trust-owned LLCs.
4. Almost all U.S. domestic LLCs will be Domestic Reporting Companies, even if they were only established for personal wealth structuring purposes.
5. Apparently, foreign companies that are not required to register to “do business” are NOT foreign reporting companies under the CTA regulations.
6. Importantly, trusts are not “reporting companies” and are not subject to the new CTA disclosure rules.?

More details about the Corporate Transparency Act’s impact on your privacy: https://www.dhirubhai.net/pulse/corporate-transparency-act-death-privacy-america-matthew-mcclintock%3FtrackingId=pwr2TyGpQGaMr27aZ7arFg%253D%253D/?trackingId=pwr2TyGpQGaMr27aZ7arFg%3D%3D