As of December 26, 2024, the United States Court of Appeals for the Fifth Circuit (the “Court”) has reinstated a nationwide preliminary injunction preventing the federal government from enforcing the beneficial ownership reporting requirements imposed by the Corporate Transparency Act (the “CTA”), including the requirement for certain companies (each, a “Reporting Company”) mandated to continuously report certain “beneficial ownership information” (“BOI”) with the Financial Crimes Enforcement Network (“FinCEN”). Subject to certain exemptions, private fund advisers and the private funds they advise are considered Reporting Companies under the CTA.
The Court’s order states that the CTA may not be enforced and that Reporting Companies need not comply with the CTA’s upcoming January 1, 2025 deadline for filing BOI reports while the injunction remains in effect.
Key Takeaway: Private funds (and their advisers) currently do not need to file Reports to comply with their obligations under the CTA.
Riveles Wahab LLP will continue to monitor developments related to the CTA and update you accordingly.
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