FinCEN Removes Beneficial Ownership Reporting Requirements

The Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule that eliminates the requirement for U.S. companies and individuals to report beneficial ownership information (BOI) under the Corporate Transparency Act.

Key Changes:

• U.S. Entities Exempt: All entities created in the U.S. no longer need to report BOI.

• Foreign Entities Must Report: Only entities formed under foreign laws and registered to do business in the U.S. (formerly "foreign reporting companies") are now considered “reporting companies” and must submit BOI.

• No Reporting on U.S. Persons: Foreign entities that must report will not need to include U.S. persons as beneficial owners.

New Reporting Deadlines for Foreign Entities:

• Registered Before Rule Publication: Must submit BOI within 30 days of publication.

• Registered After Rule Publication: Must submit BOI within 30 days of receiving registration confirmation.

FinCEN has also announced that it will not enforce penalties for past non-compliance by U.S. entities or individuals. These changes are effective immediately, even before formal publication in the Federal Register.

If you would like to read in more detail, please visit FinCEN’s website.