The Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule significantly narrowing the scope of the Corporate Transparency Act (CTA) by removing the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI).
Under the interim final rule, all entities formed in the United States are now exempt from reporting requirements under the CTA. Only foreign entities (those formed under foreign law and registered to do business in the U.S. through a state or tribal filing) must report BOI. Additionally, foreign entities are not required to report 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 will accept public comments and plans to issue a final rule later this year; however, significant policy changes are not expected.
