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The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued an interim final rule on March 21, 2025, that exempts domestic companies from having to report beneficial ownership information under the Corporate Transparency Act (CTA), limiting CTA compliance only to foreign reporting companies. According to the summary of the new rule:
FinCEN is adopting this interim final rule to narrow the existing beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) to require only entities previously defined as “foreign reporting companies” to report BOI. Under this interim final rule, entities previously defined as “domestic reporting companies” are exempted from the reporting requirements and do not have to report BOI to FinCEN, or update or correct BOI previously reported to FinCEN.
The new rule also includes limited exceptions from CTA filing requirements for U.S. persons who are beneficial owners of a foreign reporting company registered to do business in the United States.
FinCEN’s release of the new interim final rule ostensibly puts to rest the CTA’s recent on-again/off-again history and the need for owners of U.S. family-owned businesses to report and update beneficial ownership information.
The new rule is effective once printed in the Federal Register, which is expected this week, and penalties for any filing requirements were previously deferred under FinCEN’s February 27 announcement pending issuance of the interim final rule. Any stakeholders wishing to comment on the new rule have 60 days from the publication date to submit comments. FinCEN expects to issue a final rule, after assessing public comments, later this year.
It is unclear whether Congress will move to codify the new FinCEN interim final rule. Pending legislation (H.R. 736), which would extend the filing deadline until January 1, 2026, would only be relevant to foreign reporting companies under the interim final rule.
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