The United States requires disclosure of the ultimate beneficial owners of companies

By Legal Solutions • 2 minute read

Starting January 1, 2024, the United States requires disclosure of the ultimate beneficial owners of companies. This means that the United States has joined countries adhering to International Standards, particularly FATF Recommendation 24, regarding "Transparency of Beneficial Ownership of Legal Persons and other Legal Structures." This has been achieved through the implementation of a Beneficial Ownership Registry and the imposition of reporting obligations for both domestic and foreign declaring entities.

What is the ultimate beneficial owner?

The concept of ultimate beneficial owner refers to natural persons who are the true owners or controllers of a legal entity. It also includes individuals who economically benefit from such a legal entity. Therefore, ultimate beneficial owners can own a company, trust, foundation, etc.

The United States requires disclosure of the ultimate beneficial owners of companies starting January 1, 2024. This means that all companies will be obligated to report to the Resident Agent within 90 days of the formation of a new entity. Below are the details required, both from the company and its ultimate beneficial owner.

Company Name
Current Address of Your Principal Place of Business
Employer Identification Number (EIN).
Name, date of birth, passport number, and address of the ultimate beneficial owner.

It is worth noting that this database will be exclusively accessible to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury, federal, state, local, and tribal officials. Additionally, certain foreign officials (under mutual legal assistance frameworks) who submit a request through a U.S. federal government agency will have access to the database.

In Legal Solutions Panama, we have an expert team specializing in the formation of Sociedades Anónimas. If you would like to engage us as your trusted resident agents, please do not hesitate to contact us. You can also reach us via email at info@legalsolutionspanama.com.