Treasury Department Announces Major Changes to BOI/Corporate Transparency Act Enforcement (Washington, DC) — The U.S. Department of the Treasury announced today that it will not enforce penalties or fines related to the beneficial ownership information (BOI) reporting rule under the Corporate Transparency Act (CTA). This decision applies not only to current regulatory deadlines but also to future enforcement actions against U.S. citizens, domestic reporting companies, and their beneficial owners once forthcoming rule changes take effect.
In a significant shift, the Treasury Department revealed that it will introduce a proposed rulemaking to narrow the scope of the BOI reporting rule, limiting its application solely to foreign reporting companies. This move aims to alleviate regulatory burdens on American businesses and ensure that the rule serves the broader public interest without unduly affecting small enterprises.
“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
The Corporate Transparency Act, originally enacted to combat supposed illicit financial activities, required businesses to disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). However, concerns over compliance costs and administrative burdens prompted calls for regulatory relief, particularly from small businesses.
The Treasury’s decision is expected to be welcomed by business owners and industry groups who have advocated for more tailored regulations. By exempting U.S. entities from enforcement and shifting the focus to foreign reporting companies, the administration aims to strike a balance between financial transparency and economic growth.
Further details regarding the proposed rulemaking and implementation timeline will be released in the coming weeks as the Treasury Department works to finalize the regulatory adjustments.
Treasury Department Announces Major Changes to BOI/Corporate Transparency Act Enforcement
