ALERT: Corporate Transparency Act (CTA) Scam Using Fraudulent Correspondence

The Whitlock Co. wants to warn business owners of a recent scam involving the Corporate Transparency Act (CTA)

The Financial Crimes Enforcement Network (FinCEN) has issued an alert about fraudulent attempts to solicit information from individuals and entities subject to the CTA. The CTA scam uses fraudulent correspondence that may be titled “Important Compliance Notice” or something similar and asks the recipient to click a link or scan a QR code. 

Do not click, scan, or respond to e-mails or letters attempting to solicit CTA information. Note that FinCEN does not send communications requesting CTA information from individuals and entities. 

Where Is This Scam Coming From?

Likely, this communication comes from an entity posing as a government office or compliance division. The communication may come from “the United States Business Regulations Department, Corporate Transparency Act Division, Process and Filing Center” or some similar bogus, official-looking government entity.

What Is the Corporate Transparency Act (CTA)?

The Corporate Transparency Act, passed in 2019, requires most companies, LLCs, partnerships, and other entities in the United States to report information about their beneficial owners. Beneficial owners include but are not limited to, people who direct the company, have appointment or removal authority, and senior officers, as well as individuals with a 25 percent or more ownership interest in the company, either directly or indirectly.

The overall goal of the CTA is to reduce illegal financial activities, such as money laundering, financing of terrorism, and tax fraud. Starting on Jan. 1, 2024, all beneficial owners submit their initial filings by Jan. 1, 2025.

Please consult with your attorney for help in making sure your business complies with these new regulations.


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