As of December 4, 2024, the U.S. District Court for the Eastern District of Texas (the “Court”) has issued a nationwide preliminary injunction preventing the federal government from enforcing the beneficial ownership reporting requirements imposed by the Corporate Transparency Act (the “CTA”). The CTA, which became effective on January 1, 2024, imposes obligations on millions of entities (each, a “Reporting Company”), including private fund advisers …
New FinCEN Beneficial Ownership Reporting Requirements for Private Fund Managers and Other Companies (January 2024)
The United States Corporate Transparency Act (the “CTA”) was passed by the United States Congress in early 2023 to improve financial transparency and increase the effectiveness of anti-money laundering efforts. However, the CTA will also impose several obligations on millions of entities (each, a “Reporting Company”), including private fund advisers and the private funds they advise (subject to certain exceptions as outlined below) to continuously …
FinCEN Proposes Long-Expected AML Rule for Investment Advisers
By William Kelly On August 25th, the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) proposed a new rule applicable to investment advisers. At its core, the proposal seeks to extend anti-money laundering (“AML”) obligations imposed under the Bank Secrecy Act (“BSA”) to registered investment advisers. This proposal comes as little surprise, as the Treasury Department has long contemplated the extension of AML regulations to investments …