​Passed in 2021, the Corporate Transparency Act (CTA) seeks to address illegal activities such as tax evasion, money laundering, and terrorism financing by obtaining additional ownership details for select U.S. businesses involved in or accessing the nation's market. With the new law in place, qualifying businesses are required to furnish a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN) within the U.S. Department of the Treasury, disclosing information that identifies individuals linked to the reporting entity.

The purpose of the CTA is to stop individuals with harmful intentions from concealing or profiting from their ownership of U.S. entities to facilitate unlawful activities. Congress views this as a prevalent tactic that poses threats to national security and economic stability.