FinCEN Eliminates BOI Reporting Requirements for U.S. Companies

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

The issuance of the interim final rule is consistent with an announcement by the Treasury Department on March 3 that it would not enforce any penalties or fines associated with the BOI reporting rule.

In the interim final rule, FinCEN revised the definition of “reporting company” in its implementing regulations to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly known as “foreign reporting companies”).

Foreign entities that meet the new definition of a “reporting company” and do not qualify for an exemption from the reporting requirements must report their BOI to FinCEN under new deadlines. These foreign entities, however, will not be required to report any U.S. persons as beneficial owners, and U.S. persons will not be required to report BOI with respect to any such entity for which they are a beneficial owner. FinCEN is accepting comments on this interim final rule and intends to finalize the rule this year.