Corporate Transparency Act Implementation Begins January 2024

The Corporate Transparency Act (CTA), effective January 1, 2024, mandates that many U.S. and foreign businesses must file beneficial ownership information reports with FinCEN, aiming to combat money laundering and tax evasion. Non-compliance can lead to civil penalties and criminal charges, with the reporting deadline varying by the date of entity formation. Meanwhile, U.S.-Iran relations remain fraught, with Iran's use of shell companies to launder money posing significant challenges, as highlighted by a federal complaint against Iranian nationals for evading U.S. sanctions. Additionally, political activity transparency has emerged as a critical concern among investors, spurred by the 2010 Citizens United ruling which allowed unlimited corporate spending in elections. Shareholder proposals for greater transparency have surged, reflecting a growing demand for accountability in corporate political engagements. As President Trump potentially re-enters the White House, his influence on the Supreme Court could further shape its ideological balance, particularly if vacancies arise in the near future.