New Rules for Businesses

An important change to the process of forming new business entities in the US takes effect on January 1st. In order to comply with the Corporate Transparency Act (CTA) of 2020, beginning next year most newly formed entities in the US will be required to register with FinCEN, a US government agency. Business entities that were formed before 2024 will have until 1/1/2025 to comply with this new registration requirement.

No Immediate Changes for Banking

There are no changes to regulatory requirements for financial institution onboarding or documentation; however, changes to banking regulations related to the CTA are expected to be announced at a yet unspecified future date.

Resources

• Peoples Bank’s legal counsel has created a helpful, easy to digest article on what businesses need to know to prepare for these new requirements: The Corporate Transparency Act Takes Effect January 1, 2024: What Businesses Need to Know and How to Prepare for the New FinCEN Regulations | Miller Nash LLP

• FinCEN Beneficial Ownership Information Page

• FinCEN Beneficial Ownership FAQs

• Small Entity Compliance Guide

Nothing in this communication should be considered legal advice. For questions regarding how your specific business must comply with these rules, please consult your legal counsel.