Small business owners should not forget about a rule — currently in legal limbo — that would require them to register with an agency called the Financial Crimes Enforcement Network, or FinCEN, by Jan. 1.
The registration is part of the Corporate Transparency Act, an anti-money laundering statue passed in 2021. Under the CTA, the owners and part-owners of an estimated 32.6 million small businesses must register personal information with FinCEN, such as a photo ID and home address.
Registering isn't difficult, but if a small business owner is unaware of the requirement, they could be slapped with penalties of up to $10,000. Businesses with more than 20 employees and more than $5 million in sales can qualify for exemptions.
For now, the rule is on hold. On Dec. 3 a federal court in Texas issued a preliminary injunction prohibiting enforcement of the rule. FinCen has said registering is voluntary. But the injunction could be overturned on appeal, so small business owners should keep an eye on the case.
The act was intended to get a look inside shell companies and crack down on attempts by “criminals, organized crime rings, and other illicit actors to hide their identities and launder their money through the financial system,” Treasury Secretary Janet Yellen said in 2022.
Originally, the rules became effective in 2024 and gave existing businesses until Jan. 1, 2025, to register. However, businesses that started in 2024 were given 90 days to register.
Doris Dike, a principal at Dike Law Group in Frisco, Texas, that works with small business healthcare clients, said she is concerned about the rule going into effect in 2025.
“FinCEN is intrusive, and I’m relieved that it’s temporarily on hold. I’m not convinced it would combat money-laundering," she said. “There’s already laws in place for recording business ownership. FINCEN is burdensome and would create fear among small businesses.”
Jennifer Barnes, owner and CEO of San Diego-based accounting firm Optima Office, with 97 employees, said she might register even though the rule is temporarily on hold.
“A recent stay regarding FinCen’s Beneficial Ownership Information Reporting is just that – a stay. It is not a definitive determination on the merits of the requirement,” she said in an email. “Therefore, the prudent course of action is to file before the previously determined deadline on Jan. 1 as there is no guarantee of a deadline extension if the stay is overturned.”
FILE - U.S. Treasury Secretary Janet Yellen speaks during a visit to the Financial Crimes Enforcement Network (FinCEN) in Vienna, Va., on Jan. 8, 2024. (AP Photo/Susan Walsh, File)
SAINT-DENIS, Reunion (AP) — An overnight curfew goes into force Tuesday evening as authorities try to stabilize Mayotte in the aftermath of Cyclone Chido, the most intense storm to hit the French Indian Ocean archipelago in 90 years.
The French military said it is sending four to five planes a day with up to 50 tons of assistance, including food, water and medicine. Hundreds of military personnel have arrived in Mayotte since the weekend.
The official death toll from Saturday's cyclone rose to 22 according to the latest report from Mayotte Hospital quoted by Ambdilwahedou Soumaila, the mayor of the capital, Mamoudzou.
The newly appointed Prime Minister François Bayrou provided an update later on Tuesday saying that more than 1,500 people were injured, including more than 200 critically. However, authorities fear hundreds and possibly thousands of people have died.
French President Emmanuel Macron said he will be traveling to Mayotte soon. “Our compatriots are living through the worst just a few thousand kilometers away, and I will be by their side in a few hours in Mayotte.”
“The priority today is water and food,” Soumaila told RFI radio, adding that “there are people who have unfortunately died where the bodies are starting to decompose that can create a sanitary problem.”
The curfew requires people to stay in their homes between 10 p.m. and 4 a.m. as authorities try to prevent looting of damaged buildings.
“We don’t have electricity. When night falls, there are people who take advantage of that situation,” Soumaila said.
Speaking on France Inter radio Tuesday morning, Mayotte lawmaker Estelle Youssouffa described the challenges in accounting for victims, especially among migrants.
“The real toll of those swept away by the mud, winds and tin from shanty towns will never be known,” Youssouffa said. “This population, by definition undocumented migrants, are the main victims of this tragedy because they feared going to shelters.”
Youssouffa shared a harrowing account from an imam she spoke to on Monday, who reported burying more than 30 people in a single day in La Vigie, a makeshift settlement.
“I don’t even know if these figures are included in the official count,” Youssouffa said.
Soumaila, Mamoudzou’s mayor, said he planned to visit areas hit hardest by the cyclone on Tuesday, where survivors are still reeling from the destruction. Nearly 70% of Mayotte’s population has been impacted, with entire neighborhoods reduced to rubble.
The latest report from the French Interior Ministry says that 80% of telecom services were down, making communication on the archipelago difficult. The International Federation of Red Cross and Red Crescent Societies said it has lost contact with more than 200 volunteers on the ground.
French military aircraft were delivering water and food daily. The island’s main hospital remains severely damaged, and a field hospital is expected to arrive Thursday.
“Our compatriots are living through the worst just a few thousand kilometers away, and I will be by their side in a few hours in Mayotte,” French President Emmanuel Macron said.
Meanwhile, the government released an initial 655,000 euros ($687,000) to finance urgent needs on the island. Paris Mayor Anne Hidalgo has pledged 250,000 euros ($262,00) from the city’s emergency fund for recovery efforts.
Cyclone Chido is the deadliest storm to strike the territory in nearly a century, underscoring the vulnerability of the island’s impoverished population.
The cyclone is also threatening to escalate political tensions in France. Just days after taking office, Bayrou has faced criticism from across the political spectrum for his handling of the crisis. Critics have taken issue with Bayrou’s decision not to travel to Mayotte or attend a crisis meeting in person, choosing instead to chair a town hall in Pau, where he serves as mayor.
Bayrou responded by saying he participated in the crisis meeting via video and worked closely with Interior Minister Bruno Retailleau, who was on the ground in Mayotte. He explained that his focus has been on forming a new government.
Bayrou also announced a call for innovative housing projects, seeking designs for “easy-to-assemble” and “affordable” structures to aid in reconstruction.
“French companies and architecture schools will undoubtedly contribute to reshaping Mayotte,” Bayrou said.
He dismissed calls to declare a state of emergency on the archipelago, suggesting instead that Mayotte use European Union recovery funds and national solidarity initiatives. He highlighted the temporary field hospital set up by the French army to prevent disease outbreaks as a key example of ongoing support.
“We rebuilt Notre Dame in five years,” Bayrou said. “We’ve got less time than that to restore normal living conditions in Mayotte.”
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Nouvian reported from Paris.
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AP Africa news: https://apnews.com/hub/africa
This satellite image released by Maxar Technologies shows damage of Collège de Kwalé on the French Territory of Mayotte in the Indian Ocean after Cyclone Chido, Dec. 16, 2024. (Maxar Technologies via AP)
This photo provided on Monday Dec. 16, 2024 by the Civil Security shows rescue workers clearing a street in French territory of Mayotte in the Indian Ocean, after the island was battered by its worst cyclone in nearly a century. (UIISC7/Securite Civile via AP)
French civil security personnel load pallets of water on a transport plane for Mayotte from Saint Denis on Reunion Island, Tuesday, Dec. 17, 2024. (AP Photo/Adrienne Surprenant)
This undated photo provided on Tuesday Dec. 17, 2024 by the French Interior Ministry shows a devastated part of the French territory of Mayotte in the Indian Ocean, after the island was battered by its worst cyclone in nearly a century. (Ministere de l'Interieur/ Securite Civile via AP)
This photo provided on Monday Dec. 16, 2024 by the Civil Security shows part of the French territory of Mayotte in the Indian Ocean, after the island was battered by its worst cyclone in nearly a century. (UIISC7/Securite Civile via AP)
This photo provided by the French Interior Ministry Tuesday, Dec. 17, 2024, shows debris in a street in the Indian Ocean French territory of Mayotte. Survivors wandered through streets littered with debris, searching for water and shelter, after Cyclone Chido leveled entire neighborhoods on Saturday when it hit Mayotte, the poorest territory of France. (Ministere de l'Interieur/DICOM via AP)
This undated photo provided on Tuesday Dec. 17, 2024 by the French Interior Ministry shows a devastated part of the French territory of Mayotte in the Indian Ocean, after the island was battered by its worst cyclone in nearly a century. (Ministere de l'Interieur/ Securite Civile via AP)
