On March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) announced a significant change to the Corporate Transparency Act (CTA) regulations. The newly issued interim final rule removes the requirement for U.S. domestic companies to report Beneficial Ownership Information (BOI) to FinCEN.
This development marks a pivotal shift in the enforcement of the CTA, which previously mandated BOI reporting for millions of entities formed in the United States. Under the interim final rule, entities classified as “domestic reporting companies” are now exempt from BOI reporting requirements. The rule also revises the definition of “reporting company” to include only entities formed under the laws of foreign countries and registered to do business in the U.S. by filing with a secretary of state or similar office.
The exemption is expected to impact over 99% of entities previously subject to BOI reporting requirements, significantly reducing compliance burdens for U.S. businesses. However, foreign entities operating within the U.S. will still be required to report BOI under the revised deadlines set forth in the interim final rule.
FinCEN is currently accepting comments on this interim final rule and plans to finalize it later this year. This change is part of FinCEN’s broader efforts to streamline regulatory requirements while maintaining transparency and accountability in corporate ownership structures. For more details, visit FinCEN’s official website.
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