On March 21, 2025, the Financial Crimes Enforcement Network ("FinCEN") issued an interim final rule that significantly narrows the beneficial ownership information ("BOI") reporting requirements under the Corporate Transparency Act ("CTA").
Consistent with the U.S. Treasury Department's announcement earlier this month, the new rule removes BOI reporting requirements for all U.S. reporting companies and their beneficial owners. U.S. persons who are beneficial owners of foreign reporting companies are also exempt from CTA reporting obligations under the new rule. Going forward, only companies formed under foreign law and that are registered to do business in the U.S. will be required to submit BOI reports.
The interim final rule extends the deadline for foreign reporting companies to file BOI reports to 30 days after the date the interim final rule is published in the Federal Register or 30 days after the foreign reporting company registers to do business in the U.S., whichever is later.
FinCEN will accept comments on the interim final rule for 60 days and intends to finalize the rule later this year.
While the interim final rule may be subject to future legal challenges, domestic companies and U.S. individuals are now relieved of reporting obligations under the CTA. KMK will continue to monitor any further developments and provide updates as they occur.
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