FinCEN Issues Interim Final Rule Removing Reporting Requirements for U.S. Companies and Individuals

March 25, 2025

The back-and-forth legal tug of war with the Corporate Transparency Act (CTA) may have reached a final resolution.

The Financial Crimes Enforcement Network (FinCEN) issued an interim final ruling that removed the requirement for U.S. companies and individuals to complete beneficial ownership information (BOI) forms as previously required under the CTA.

In its ruling, FinCEN revised the definition of a reporting company to include only those companies formed under the laws of a foreign country that have registered to do business in a U.S. State or Tribal jurisdiction.

This means, effective immediately, all entities created in the United States and their beneficial owners are now exempt from the previous requirements to report the BOI under FinCEN.

Additionally, any U.S. persons who are beneficial owners in a foreign entity will not have to complete a BOI, and the foreign entity will not be required to report any U.S. persons as beneficial owners.

The interim rule is now open to a comment period, with FinCEN expected to finalize the rule before the end of 2025.