U.S. entities or persons no longer required to report Beneficial Ownership Information (BOI)
The Corporate Transparency Act (CTA) interim final rule has been revised to redefine the definition of a “reporting company” issued by the Financial Crimes Enforcement Network (FinCEN) on 21 March 2025. This change no longer requires U.S companies or persons to report beneficial ownership information.
The new definition of the rule does not include foreign entities and outlines that any foreign entities formed under foreign laws and registered to business in any U.S state or Tribal jurisdiction are still permitted to report beneficial ownership information.
The change has made a substantial difference to the number of companies reporting under the CTA Act in the U.S resulting to 12,000 from 32 million, and has come into effect as the U.S Government recognises that BOI reports from domestic companies do not provide value for national security or law enforcement purposes, nor serves public interest. Foreign pooled investment vehicles are exempt from reporting on U.S persons who hold substantial control over the entity.
The rule was made effective immediately published by FinCEN on 26th March, and foreign companies presently in the U.S are required to file a beneficial ownership information report (BOIR) within 30 days of the newly published rule. Any newly registered foreign entities also have 30 days to file an initial BOIR once registered.