What is Legal Compliance?
Legal compliance is the obligation of companies to adhere to all relevant laws and regulations that govern their operations, including the Corporate Transparency Act (CTA) and anti-money laundering regulations enforced by the Financial Crimes Enforcement Network (FinCEN). This includes ensuring that companies report accurate and timely Beneficial Ownership Information (BOI) to FinCEN, as required under the CTA, to promote transparency and prevent financial crimes such as money laundering, tax evasion, and fraud.
Compliance with these laws involves following procedures for identifying and disclosing the individuals who own or control a company. Failure to meet legal compliance obligations can result in penalties, fines, or other legal actions, making it crucial for businesses to stay updated on evolving regulations and implement robust compliance programs.
Legal compliance ensures that companies operate within the legal framework set by federal and state authorities, safeguarding both the organization and the broader financial system.
