In the event of non-compliance, both civil and criminal penalties will be applied, which may be imposed on the company and those involved.
On january 1, 2024, the Corporate Transparency Act became effective, which establishes new reporting obligations for a broad spectrum of U.S. companies, as well as for Chilean taxpayers that have companies incorporated and registered in the United States.
Under this law, companies designated as “reporting entities” must provide details about the entity itself, its beneficial owners (the controlling entity) and, in some cases, the requester.
All information collected will be stored in a database called “FinCen”, belonging to the Financial Crimes Enforcement Network. It is important to note that this database will not be publicly accessible, which means that it will not be possible to share information with other states.
Registration only needs to be done once and does not need to be done annually. However, in case of changes in the company, a 30-day period is available to report the changes.
In case of failure to comply with this obligation, either by not filing the registration statement or by providing incomplete or false information, both civil (up to $500 per day) and criminal (up to two years imprisonment) penalties will be applied. These penalties may be imposed on both the company and the individuals responsible.
It is important to mention that the recent suspension of BOI (Beneficial Owner Identification) reporting in the US has been revoked, and the deadline for filing has been extended to January 13, 2025.
Thus, all entities incorporated in the US and foreign entities registered to operate must report to FinCEN (Financial Crimes Enforcement Network) on their beneficial owners, thus complying with the Corporate Transparency Act, which seeks to strengthen corporate transparency and prevent financial crimes such as money laundering and tax evasion, in line with international standards of good corporate governance.
At az Miami, a commercial hub that combines the legal and business worlds, we have all the tools to support our clients in Chile in the above mentioned procedures and other matters related to their soft landing processes in the USA.
For more information on these topics you can contact our Tax and Corporate and Business team:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
Andrea Bobadilla | Tax Group Director | abobadilla@az.cl
Stephanie Cruz | Directora Legal & Business | scruz@az.cl
Valentina Herrera | Associate Tax Group | vherrera@az.clc
Javiera Melo | Associate Tax Group | jmelo@az.cl
Pablo Méndez | Associate Corporate and Business Group | pmendez@az.cl
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