The Beneficial Ownership Information (BOI) Reporting Rule, established under the Corporate Transparency Act (CTA) of 2020, requires certain entities to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Designed to enhance transparency and combat illicit finance, the rule applies to individuals owning or controlling at least 25% of a reporting company.

Despite its clear vision, the rollout of the Rule has been anything but smooth, with multiple legal challenges delaying its enforcement.

A recent press release by the U.S. Treasury Department represents the latest roadblock. While FinCEN states that BOI reporting requirements remain in effect, with a compliance deadline of March 21, 2025, the U.S. Treasury Department announced that it will not enforce penalties or fines against U.S. businesses failing to file a BOI report, and further plans on issuing a proposed rule-making that will narrow the scope of the rule to foreign reporting companies only. In support of its position, the Treasury Department cites the need to “unleash American prosperity by reigning in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”

Whether BOI reporting for US companies will continue remains to be seen, but as of now, U.S. companies can submit their beneficial ownership information to FinCEN at no cost via the E-Filing system:
https://boiefiling.fincen.gov.

Unsure whether the BOI Reporting Rules apply to your business or how to stay compliant? Contact us.