The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) estimates that the rule will impact approximately 32.6 million reporting companies in 2024 alone.
Thousands of small businesses, legal and compliance professionals are increasing their levels of readiness to comply with new U.S. beneficial ownership reporting requirements, according to the results of a new poll by Wolters Kluwer CT Corporation.
The results reflect responses from more than 5,100 attendees and those surveyed during Wolters Kluwer’s January 23, 2024 beneficial ownership webinar.
Up eight points compared to a similar webinar poll in November 2023, January’s results show that 26% of respondents characterized their organizations’ readiness levels as between 75% to 100% when asked about complying with the new reporting rule, which took effect January 1 as part of the Corporate Transparency Act (CTA). The same question at Wolters Kluwer’s November 15, 2023 webinar indicated a level of just 18% readiness among 4,200 attendees.
“There is a noticeable uptick in the market, not only in terms of greater awareness but also in preparations among those who realize they are subject to the beneficial ownership reporting requirements,” said Rupak Venugopal, Vice President, Beneficial Ownership, for Wolters Kluwer’s Financial & Corporate Compliance division. “But despite this upward trend, there remains a considerable lack of awareness among impacted businesses, and we are working diligently to help change that dynamic through a growing ecosystem of partnerships that can provide secure and trustworthy resources to comply.”
The prevalence of respondents who indicated a total lack of preparedness dropped seven points, from 38% in November’s webinar to 31% in January’s poll. Both polls, however, show substantial increases in readiness levels compared to a Wolters Kluwer survey from mid-2023, when 74% of respondents representing companies potentially subject to the reporting requirement indicated they had only become aware of the rule “by having taken the survey.”
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) estimates that the rule will impact approximately 32.6 million reporting companies in 2024 alone. There are significant consequences for non-compliance, including fines of up to $10,000 and possible incarceration.
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