The Corporate Transparency Act: A New Attempt to Fight Money Laundering
Concepts: Drug Trade, Proliferation Financing, Money Laundering, Corporate Transparency Act, CTA
Editor's Note: Scroll down for an important update about the CTA.
The United Nations Office on Drugs and Crime estimates that between $800 billion to $2 trillion in drug money is laundered annually. So, too, is money intended to support terrorism. The International Monetary Fund warns about about terrorism financing and proliferation financing, i.e., providing funds for nuclear, chemical, or biological weapons. And for the embezzlers and criminal enterprises out there, your money has to be cleaned, too. But you already know that.
As of Jan. 1, 2024, in an effort to combat money laundering and related activities, domestic and foreign entities registered to do business in the United States must comply with new “beneficial ownership reporting requirements” imposed under the Corporate Transparency Act.
Listen to what veteran attorney Lori Smith of Stradley Ronon has to say about the Act, something 30 million companies will have to follow in the Act's first year. Lori provides insights for business executives and attorneys on key facets of the requirements, potential penalties, and chances for litigation.
I hope you enjoy the episode. If so, give us a rating!
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This podcast is the audio companion to the Journal on Emerging Issues in Litigation. The Journal is a collaborative project between HB Litigation Conferences and the vLex Fastcase legal research family, which includes Full Court Press, Law Street Media, and Docket Alarm.
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Tom Hagy
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Host of the Emerging Litigation Podcast
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Update: CTA Held Unconstitutional in Alabama
"It remains to be seen what this really means as the decision is likely to be appealed and for now by its terms, the injunction imposed by the judge only applies to the plaintiffs in the Alabama case. It will be interesting to see if additional cases are filed. There was one case filed already in Ohio but the real test will be if there are significant challenges around the country especially on behalf of large trade associations or other groups representing small businesses."
The decision was handed down on Friday, March 1, by Judge Liles C. Burke.
Lori combines her transactional experience with her traditional health care, technology and financial services industry knowledge and a deep understanding of the nuances of the digital age. She has extensive experience representing companies from formation and growth stage through exit in a wide range of industries, including technology, media and communications, fashion and textiles, financial services, food and beverage, sports, gaming, specialty chemicals, insurance, healthcare and digital health.
Lori earned her J.D., with high honors, from Duke University School of Law and her B.A., magna cum laude, from the University of Rochester.