In this video, my law partner Mitzi Hill and I discuss challenges for businesses complying with the Corporate Transparency Act and U.S. privacy laws.
In several U.S. states, legislatures have adopted laws that restrict how businesses may collect personally-identifiable information (“PII”), use PII and store PII. In some of those states, there are requirements for giving notice that PII is going to be collected. Some state laws obligate a business to permit individuals to edit or even delete their PII that is held by the business.
In contrast, the Corporate Transparency Act obligates roughly 25 million U.S. businesses to collect specific items of PII from their officers, directors and beneficial owners and to file a report with FinCEN containing that data. At first glance, there is a clear conflict between the blanket obligations imposed by the CTA and those imposed by some state privacy laws.
About The Author
Jonathan Wilson is the co-founder of FinCEN Report Company with 31 years of experience in corporate, M&A and securities matters. He is the author of The Corporate Transparency Act Compliance Guide (to be published by Lexis Nexis in the summer of 2023) and the Lexis Practical Guidance Practice Note on the Corporate Transparency Act.
