Recent United States Initiatives to Enforce Integrity

The Corporate Transparency Act was enacted as part of the Anti-Money Laundering Act of 2020.  In particular, 31 U.S.C. § 5336 was enacted and multiple proposed and final regulations have been issued.  The statute and the regulations were designed to provide transparency with respect to corporate ownership in the United States and represent a sea change with respect to its requirements for new and existing businesses. The statutory framework raises significant additional ethical obligations for attorneys. The constitutionality of the act has been challenged and its future remains unclear.

Learning Objectives:

1. Examine the basics of information reporting and document protection provided under the Corporate Transparency Act

2. Identify who is a "beneficial owner" and the exceptions to the reporting requirements

3. Review additional due diligence requirements to be placed upon accountants, lawyers, and others involved in the process under the act

4. Discuss constitutional challenges to the Corporate Transparency Act

5. Analyze hypotheticals with respect to the application of the Corporate Transparency Act