Brandi Reynolds Quoted by Bloomberg Tax on FinCEN’s Interim CTA Rule

In a recent article published by Bloomberg Tax, the future of the Corporate Transparency Act (CTA) comes into question following a major shift in reporting requirements from the Financial Crimes Enforcement Network (FinCEN).

Originally intended to bring transparency to the beneficial ownership of more than 32 million companies, the CTA’s scope has been dramatically narrowed. Under FinCEN’s interim rule, fewer than 12,000 entities are now expected to report—raising concerns about the law’s effectiveness and enforcement.

Among the key issues highlighted:

• Foreign companies may sidestep CTA requirements by setting up U.S. subsidiaries.

• There is still no centralized ownership database, limiting transparency and information-sharing.

• Financial institutions face increased complexity, not clarity, in risk management.

Bates Group Managing Director Brandi Reynolds, CAMS-Audit, CCAS, summed it up in her comments to Bloomberg Tax:

“For risk management teams, it actually makes things more complicated.”

The regulatory landscape is becoming increasingly fragmented. Some states are introducing their own reporting regimes, which may soon leave businesses juggling multiple compliance obligations—each with its own deadlines, filing requirements, and potential fees.

Read the full article from Bloomberg Tax

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