FinCEN has issued a notice of proposed rulemaking (NPRM) regarding how the agency is planning to implement the Corporate Transparency Act (CTA). The NPRM came out on December 8, 2021, accompanied by an explanatory factsheet. Congress passed the CTA on January 1, 2021 in order to require U.S. companies to disclose beneficial ownership information.
Reporting Requirements: Reporting companies will have to file a Beneficial Ownership Information (BOI) Report. FinCEN has not yet said how to do this, but will likely issue a form and instructions that reporting companies will then file with FinCEN. Reporting companies must report each beneficial owner’s (1) name, (2) birthdate, (3) address, and (4) a unique identifying number from an acceptable identification document (and the image of such document).
A “beneficial owner” is any individual who (i) owns 25% or more of the reporting company or (ii) exercises substantial control over the reporting company. The NPRM sets forth three non-exclusive indicators of substantial control: (1) service as a senior officer of a reporting company; (2) authority over the appointment or removal of any senior officer or dominant majority of the board of directors (or similar body) of a reporting company; and (3) direction, determination, or decision of, or substantial influence over, important matters of a reporting company. The “substantial control” prong aims to identify the individuals who stand behind the reporting company and direct its...
Jordan Nyesom-Wike, son of Nyesom Wike, minister of the Federal Capital Territory (FCT), has accused Safwan Garba, a businessman and his lawyer of making false claims in a petition to the Economic...