FinCEN Narrows Corporate Transparency Act Reporting Requirements

On March 21, 2025, the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) implemented an interim final rule that significantly narrows the beneficial ownership information (BOI) reporting requirements established under the Corporate Transparency Act (CTA). This new rule exempts all U.S. reporting companies from BOI reporting, only requiring foreign entities registered to do business in the U.S. to report their beneficial ownership details. The change reflects FinCEN's assessment that requiring BOI from domestic companies does not serve public interest or enhance national security efforts. The interim rule follows months of legal challenges and regulatory shifts, including a suspension of enforcement actions announced earlier in February. FinCEN plans to accept public comments for 60 days and aims to finalize the rule later this year. The overall compliance burden is estimated to be reduced by 99.8% under the new regulations.