Ambiguity of American Corporate Transparency Act

20.12.2023 On January 1, 2024, the Federal Law on Corporate Transparency comes into force in the United States, which obliges millions of legal entities to register their beneficial owners with the Financial Crimes Enforcement Agency of the U.S. Treasury (FinCEN).

Experts believe that the intentionally broad criterion of "substantial control" in relation to beneficial ownership provided for by Law means that almost any person who can make important decisions affecting the activities of a reporting company can be considered subject to reports.

Questions remain about the scope of the Law. It is not clear whether the beneficial owner is an individual who is the trustee of several separate trusts that collectively own or control the reporting company. A similar uncertainty exists in cases where there are several current beneficiaries of a trust with sufficient ownership or control over the reporting company, or when an individual A person is a beneficiary of several trusts, which together have sufficient ownership or control over the reporting company.

Link to source: https://www.fincen.gov/boi-faqs