O’Melveny Worldwide

Today’s General Counsel: Corporate Transparency Act Announced

October 21, 2022

Secretary of the Treasury Janet L. Yellen said that the new rule on beneficial ownership reporting under the Corporate Transparency Act will give law enforcement and national security agencies “the information they need to crack down on criminals, corrupt individuals, and other bad actors who seek to take advantage of America’s financial system for illicit purposes.” O’Melveny partner AnnaLou Tirol, former deputy director of FinCEN, said that two additional rules are also going to be put in place, arising out of the Anti-Money Laundering Act of 2020. Tirol noted that the rule creates “a new requirement for millions of corporations, LLCs, and other entities” to disclose names, addresses, birth dates, and other identifying information, “a simple process for some, a much more complex assessment for others.” The rule goes into effect on January 1, 2024.

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