U.S. Ends BOI Reporting for Most Companies, Exempting 99%

The Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule that eliminates the beneficial ownership information (BOI) reporting requirements for U.S. companies and U.S. persons under the Corporate Transparency Act (CTA). This change exempts over 99% of entities from reporting, limiting requirements to foreign companies registered to do business in the U.S. The revised definition of 'reporting company' now includes only those formed under foreign law, while domestic companies are no longer subject to these requirements. Additionally, foreign reporting companies are exempt from reporting BOI for U.S. persons who are beneficial owners. The interim rule also extends the filing deadline for foreign entities that were registered before the rule's publication. These modifications follow a broader policy shift indicated by the Treasury Department, aiming to reduce compliance burdens on U.S. entities.