Corporate Transparency Act and Health Care Providers

• February 09, 2024

• Christopher Conn , Venable
• Patrick Dunbar , Venable

Beginning January 1, 2024, the Corporate Transparency Act (CTA) requires that domestic and foreign legal entities operating in the United States report beneficial ownership information (BOI), barring certain exemptions, to the Financial Crimes Enforcement Network (FinCEN).[1] The CTA’s purpose is to better regulate “shell” companies, which are often used to support terrorism, money laundering, and other illicit activities.[2] While the CTA’s targeting of illegitimate activities may prove beneficial for national security, the legitimate activities of for-profit health care businesses and medical practices (collectively, health care providers) will also be burdened by the CTA’s disclosure requirements. With this mind, health care providers should become familiar with the CTA’s disclosure requirements and assess what impacts the CTA may have on their business.

ARTICLE TAGS

• Business Law and Governance Practice Group
• Health Care Finance and Transactions