On March 26, 2025, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued an interim final rule that exempts United States domestic companies from reporting beneficial ownership information to FinCEN under the Corporate Transparency Act of 2021.
The interim final rule revises the definition of “reporting company” to include “entities formed under the law of a foreign country that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office…” Further, U.S. persons are exempted from providing beneficial ownership information for any reporting company for which they are a beneficial owner.
This regulatory change was positioned as a measure to ease the compliance burden on U.S.-based businesses. However, it has generated debate among compliance professionals and transparency advocates, who argue that the exemption may create vulnerabilities in the financial system and hinder efforts to detect and prevent illicit finance.
Public comments regarding the interim final rule may be submitted through May 27, 2025.
For any questions related to this rule or other investigative services, contact Nona Patronite at [email protected] .