Majority of U.S. Businesses Concerned About Corporate Transparency Act Compliance
13 Agosto 2024 - 8:47AM
Business Wire
New global study by CSC uncovers widespread
uncertainty around reporting requirements
New research by CSC among senior in-house legal and compliance
executives has found that an overwhelming majority (83%) are
concerned about their own organization’s compliance with the
Corporate Transparency Act (CTA), while over three quarters (76%)
believe the CTA is causing concern amongst U.S. businesses more
broadly. A mere 1% of those surveyed have no concerns about their
organization’s CTA compliance.
The CTA took effect on January 1, 2024, with the objective of
giving law enforcement and other government agencies more tools to
protect national security and fight corruption, terrorism, and
money laundering.
The study by CSC1, the world’s leading provider of global
business administration and compliance solutions, was commissioned
among 200 senior professionals including general counsels and
corporate secretaries across a broad range of industries in the
U.S., Continental Europe, the U.K., and APAC, to gauge their views
on the introduction of the Act. Respondents were from U.S.-based
corporations and non-U.S. based multinational corporations with
entities registered in the United States.
The findings, detailed in a new report, “The Corporate
Transparency Act: Readiness, Concerns, and Implications,” shed new
light on their primary concerns, key compliance challenges, and the
longer-term implications of the law’s introduction.
“While CTA regulation has been in effect since the start of this
year, organizations are still grappling with what it means for
them,” says Julie Dallmann, product management director at CSC.
“The legal complexities involved are unchartered territory for
many, with the different moving parts both challenging to interpret
and balance.”
The research found that while nearly all (93%) respondents said
they’re aware of the CTA, widespread uncertainty around its
intricacies remains. Less than half (45%) of respondents surveyed
are aware of the CTA’s reporting requirements at this stage, and
only 39% are aware of the reporting deadlines. Just a third are
familiar with the CTA’s exemptions.
CSC’s study identified the lack of guidance around what non-U.S.
entities need to do as a major concern among respondents, with
nearly two-thirds (62%) citing this as a challenge ahead of high
fees and costs, and a lack of understanding around the penalties
for CTA non-compliance (both of which were identified by nearly 40%
of respondents).
“The extent to which businesses are still feeling unfamiliar or
uncomfortable about their organization’s ability to comply with the
CTA is worrying but unsurprising,” says Julie. “It’s clear the
subjectiveness of the CTA, including ambiguity around exemptions
and the question of who within an organization meets the definition
of being a beneficial owner, is causing uncertainty as to its
provisions.
“With much of the onus on the organization to ensure compliance,
these complexities are driving more businesses to partner with
third-party service providers who are able to ensure compliance
with the CTA, allowing them to focus on their strategic business
priorities.”
To receive a copy of CSC’s “The Corporate Transparency
Act: Readiness, Concerns, and Implications report,” contact Camilla
Wyatt at cscteam@citigatedewerogerson.com.
Notes to editors
1CSC, in partnership with Pure Profile, surveyed 200 general
counsels, corporate secretaries, and other senior in-house legal
and compliance executives from across a broad range of industries
in the U.S., Continental Europe, the UK, and APAC, to gauge views
on the introduction of the Corporate Transparency Act, which took
effect on January 1, 2024. Respondents were from U.S.-based
corporations or non-U.S. based multinational corporations with
entities registered in the United States.
About CSC
CSC is the trusted partner of choice for more than 90% of the
Fortune 500®, more than 90% of the 100 Best Global Brands
(Interbrand®), and more than 70% of the PEI 300. We are the world’s
leading provider of global business administration and compliance
solutions, specialized administration services to alternative asset
managers across a range of fund strategies, transactions involving
capital markets participants in both public and private markets,
domain name system management and digital brand and fraud
protection, and corporate tax software solutions. Founded in 1899
and headquartered in Wilmington, Delaware, USA, CSC prides itself
on being privately held and professionally managed for more than
125 years. CSC has office locations and capabilities in more than
140 jurisdictions across Europe, the Americas, Asia Pacific, and
the Middle East. We are a global company capable of doing business
wherever our clients are—and we accomplish that by employing
experts in every business we serve. We are the business behind
business®. Learn more at cscglobal.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240813651988/en/
Citigate Dewe Rogerson Camilla Wyatt
cscteam@citigatedewerogerson.com CSC Laura Crozier PR
Manager laura.crozier@cscglobal.com CSC News Room