The U.S. Department of the Treasury has issued a press release outlining significant developments regarding Beneficial Ownership Information (BOI) reporting requirements. The Treasury Department, which oversees the Financial Crimes Enforcement Network (FinCEN), has announced the following key updates:

Key Points of the Announcement

• The Treasury Department will not enforce penalties or fines associated with the beneficial ownership information reporting requirements under existing regulatory deadlines

• Enforcement actions will not be pursued against U.S. citizens or domestic reporting companies even after forthcoming rule changes take effect

• A proposed rulemaking will be issued to narrow the scope of the rule to foreign reporting companies only

Looking Ahead

Business owners should stay informed about the forthcoming proposed rulemaking that will formally narrow the scope of the CTA to foreign reporting companies only. While enforcement has been suspended, the legal framework continues to evolve.

THIS CLIENT ALERT IS A GENERAL UPDATE REGARDING THE CORPORATE TRANSPARENCY ACT (CTA). IT, THEREFORE, IS NOT INTENDED TO BE, AND SHOULD NOT BE CONSTRUED AS, LEGAL ADVICE.

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