Carta asks FinCEN for additional guidance on CTA compliance

Carta and 19 coalition members author letter to FinCEN

Author:

The Carta Policy Team

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Read time:

1 minute

Published date:

August 28, 2023

Carta and a coalition of other firms authored a letter to the Financial Crimes Enforcement Network (FinCEN) urging them to include additional guidance in rules for implementing the Corporate Transparency Act.

Carta and 19 co-signatories* have written to urge the Financial Crimes Enforcement Network (FinCEN), in its final rulemaking for implementation of the Corporate Transparency Act (CTA), to include methods for covered entities and their intermediaries to easily submit required information. The coalition recommends FinCEN allow an intermediary to furnish data into the FinCEN database on behalf of a covered company, simplify access by offering an appropriate technology-enabled portal to upload said data, allow for batch upload data, and provide clarity on the responsibility of reporting companies to apply.

"The CTA will combat serious financial crimes and allow law enforcement to more easily identify and address illicit financing and the entities that facilitate and benefit from it. The implementation of the CTA will require a substantial shift in the beneficial ownership reporting regime. Providing simple ways to comply online will help covered entities—many of which are early-stage enterprises that may lack the resources and expertise to track and address new compliance matters—comply more quickly and accurately," said the coalition representing the entrepreneurship ecosystem.

The coalition appreciates FinCEN’s diligent work to implement the Corporate Transparency Act to combat illicit financing and its impacts.

Read the full letter here.

*Signatories include:

Author: The Carta Policy Team

Carta’s Policy Team aims to connect the policymaking community and venture ecosystem to build an ownership economy and advance policies that support private companies, their employees, and their investors.