In a recent press release, The U.S. Department of the Treasury has announced that it will not enforce fines or penalties against U.S. citizens and domestic reporting companies, or their beneficial owners, for failing to file beneficial ownership information (BOI) reports as mandated by the Corporate Transparency Act (CTA).
This decision effectively suspends the enforcement of the CTA’s requirements for these entities under the existing regulatory deadlines as well as after any forthcoming rule changes. Further, the Treasury is expected to issue proposed rulemaking that will “narrow the scope of the rule to foreign reporting companies only.”
The CTA, enacted in 2021, was intended to combat money laundering by requiring small businesses to register ownership information with the Treasury’s Financial Crimes Enforcement Network (FinCEN). However, the rule faced criticism from small business groups, who argued that it was invasive, burdensome, and posed privacy concerns. The Treasury’s announcement means that enforcement actions against non-compliant businesses will not be pursued.
Resources:
Subscribe to Receive FinCEN Updates
FinCEN BOI Informational Brochure
FinCEN BOI Informational Videos
Small Entity Compliance Guide for BOI Reporting Requirements
Related Posts:
FinCEN Halts Fines, Penalties and Enforcement Pending Final BOI Reporting Rule
ALERT: BOI Filing Requirements Reinstated (Again)
FinCEN BOI Filing Is Not Required Amid a Flurry of Year-End Rulings
ALERT: BOI Filing Requirements Restored with Extended Deadlines
UPDATE: Temporary Suspension of FinCEN BOI Filing Deadline
FinCEN BOI Filing Deadline is Rapidly Approaching
Federal CTA – Beneficial Ownership Reporting – Updates to FAQs
