Some owners of small businesses want to keep their ownership anonymous for various reasons. That just got a lot harder. The trend in many states is to require disclosure. Just last year, the District of Columbia joined other states in enacting legislation requiring the disclosure of beneficial ownership. Other states like Delaware have resisted the change. Now the federal government has entered the fray with the enactment of the Corporate Transparency Act (CTA). If you are a small business or if you are a small business lawyer assisting a small business, you definitely want to familiarize yourself with the CTA. Under the CTA, small business will have to submit beneficial ownership information to the Department of the Treasury’s Financial Crime Enforcement Network. The information will not be available to the general public. The new CTA accelerates that trend and it will become increasingly difficult to shield beneficial ownership information from government authorities and eventually the public at large.
The DOJ on June 1, 2020 issued a revision to its Evaluation of Corporate Compliance Programs. The new DOJ Guidance provides companies general principles and elements to consider when designing, implementing, and updating their compliance policies and procedures. The DOJ explains that the purpose of the new guidance is to assist prosecutors in making informed decisions whether and to what extent the company’s compliance program was effective at the time of the offense, and is effective at the time of a charging decision or resolution. Prosecutors can then use the guidance to determine the appropriate (1) form of any resolution or prosecution; (2) monetary penalty, if any; and (3) compliance obligations contained in any corporate criminal resolution.
- Published in Corporate compliance
Formulating policies and procedures is a critical step in building your business. These policies and procedures may be found in an employment manual or a compliance program. Every business and especially those doing business overseas should have an anti-corruption compliance program. This article provides an overview of anti-corruption compliance programs. Anti-corruption programs are quickly becoming part of the compliance landscape for U.S. companies, regardless of size and even those who have little foreign activity.
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