On 8 December 2021, the Financial Crimes Enforcement Network (“FinCEN”) released proposed rules to implement beneficial ownership reporting provisions of the Corporate Transparency Act (“CTA”). The proposed rules would increase the U.S. Government’s ability to collect data on beneficial owners for both domestic and foreign companies.
A Beneficial owner is defined as any individual who meets at least one of two criteria:
Substantial control would be defined through three indicators:
Any entity formed before the effective date of the regulation
Domestic Reporting Company / Foreign Reporting Company incorporated after effective date of regulation
As the title of this note suggests, this is a proposed rule by FinCEN and the body has requested for comments to be provided by 7 February 2022. Whilst no indication about an actual effective date was given, FinCEN did suggest it was “committed to identifying the soonest possible effective date after publication of the final rule”.
does not otherwise hold any kind or type of assets, whether in the U.S. or abroad, including but not limited to any ownership interest in any corporation, limited liability company, or other similar entity.
 Investment Company Act of 1940
 Investment Advisers Act of 1940
 Financial Stability Oversight Council
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