The Financial Crimes Enforcement Network (FinCEN) issued an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act (CTA), P.L. 116-283, passed by Congress in 2021.
The rule revises the definition of “reporting company” to mean only those entities that are formed under the law of a foreign country and 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 (formerly known as “foreign reporting companies”). FinCEN also exempts entities previously known as “domestic reporting companies” from BOI reporting requirements.
In addition, the rule exempts foreign reporting companies from having to report the BOI of any U.S. persons who are beneficial owners of the foreign reporting company and exempts U.S. persons from having to provide such information to any foreign reporting company for which they are a beneficial owner.
The update above and additional information can be found at the AICPA’s BOI Resource Center. Additional information can also be found at the FinCEN BOI Resource Website. We encourage you to check these websites regularly for further updates.
In addition, we encourage you to contact your legal counsel regarding these updates, your compliance requirements, or any other questions on this matter.
