The Corporate Transparency Act (CTA) marks a major shift in U.S. financial regulations by requiring
entities to disclose their beneficial ownership information (BOI). With this regulation, FinCEN (Financial
Crimes Enforcement Network) aims to build a secure and comprehensive database of beneficial
ownership details to combat financial crimes. Here’s a closer look at how FinCEN plans to utilize the
information collected under the CTA and how this information will be kept secure and accessible only to specific authorities.
How FinCEN Will Use CTA Data
The primary objective of the CTA is to curb the misuse of shell companies in financial crimes like money
laundering, terrorism financing, and tax evasion. FinCEN will manage this registry, which will become a
valuable resource for law enforcement, national security agencies, and regulators.
The CTA database is a unique tool, providing an unprecedented level of oversight into the ownership of
U.S.-based corporations. Through it, FinCEN can detect unusual activity patterns and work more
efficiently with other government agencies to prevent illegal activity.
Is the Information Accessible to the Public?
One of the most common questions about the CTA is its impact on privacy and whether submitted
information is accessible to the public. The answer is no; this information is not publicly accessible.
FinCEN has restricted access to the database to ensure privacy and security. Authorized parties with
access include:

• Law Enforcement Agencies: Both domestic and international law enforcement agencies (under
  strict protocols) can access the database as part of investigations.
• Regulatory Authorities: Agencies that are responsible for enforcing financial regulations, such as
  the SEC, may access this data.
• Financial Institutions: Under certain conditions, financial institutions can access the data to
  fulfill customer due diligence requirements under the Bank Secrecy Act.

FinCEN has implemented robust security protocols to protect the database, ensuring only qualified
entities with legitimate reasons can view this sensitive information. With these access limitations, the
CTA carefully balances the needs for transparency and privacy, addressing concerns about data misuse.
For businesses and individuals affected by this new regulation, FinCEN Filing Agents offers a seamless
and secure way to comply with the BOI requirements. By partnering with FinCEN Filing Agents,
companies can navigate the complexities of compliance with the confidence that their information is
protected and shared only as permitted under the law.