Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this edition of the FCPA Compliance Report, Tom welcomes back Mike Lindsey to discuss the Corporate Transparency Act. In a first for the FCPA Compliance Report, after the episode was recorded but before it was posted, the CTA was declared unconstitutional by a Trump appointed US District Judge. We recorded an addendum to consider this court decision invalidating the law.
Mike Lindsey, a distinguished corporate and transactional lawyer based at Steinbrecher & Span, has built a solid reputation as an authority on the CTA. Lindsey’s insights into the CTA are influenced by his emphasis on privacy and data security, highlighting the risks correlated with a centralized database potentially accessible via the dark web. From his perspective, the CTA serves as a critical federal law designed to increase transparency around beneficial ownership of corporations and inhibit illegal activities such as money laundering, tax evasion, and fraud. However, Lindsey also questions its effectiveness in disclosing ownership by entities like the Iran Revolutionary Guard. Despite this, he sees the CTA as a ground-breaking move for privately held companies, requiring them to report beneficial owners, something uncommon among small businesses in the United States. Ultimately, Lindsey views the CTA as an essential measure towards impeding financial crimes and enhancing accountability in corporate structures.
We also discuss the trial court decision in the case of the National Small Business Union, which invalidated the CTA and what it might mean for the law going forward.
Key Highlights:
- Beneficial Ownership Disclosure Law
- Key Players in Corporate Decision-Making
- CTA Compliance Impact on Small Businesses
- Federal Database Security Concerns
- Illicit Financial Activities and National Security Measures
- National Small Business Union decision
Resources:
Mike Lindsey on LinkedIn
Tom Fox
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