Has FinCEN’s Beneficial Ownership Information Collection Ended Anonymous LLC Filing?
By Staff The rise of limited liability companies (LLCs) in the United States has often been accompanied by concerns regarding anonymity and the potential for misuse in illicit activities such as money laundering and tax evasion. To address these concerns, the FinancialCrimes Enforcement Network (FinCEN) implemented the BeneficialOwnership Information (BOI) collection as part of the CorporateTransparency Act (CTA). This short article explores whether the BOI collection has effectively ended anonymous LLC filing in the U.S. Background: The Corporate Transparency Act The Corporate Transparency Act was enacted in January 2021 as part of the National Defense Authorization Act. Its primary goal is to combat financial crimes by requiring certain entities to disclose their beneficial owners to FinCEN. A beneficial owner is defined as an individual who directly or indirectly owns or controls at least 25% of the ownership interests of a reporting company or exercises substantial control over...