FinCEN Adopts Rule Exempting U.S. Firms
from BOI Requirements Under CTA
The Financial Crimes Enforcement Network (FinCEN) has adopted the interim final rule narrowing the existing beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA).
Under this rule, only entities that were previously defined as “foreign reporting companies” are required to report BOI. This rule is effective immediately.
Galleros Robinson had previously reported that the Treasury Department had announced on March 2nd that, with respect to the CTA, “not only will it not enforce any penalties or fines associated with the beneficial ownership information (BOI) reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.
According to FinCEN, under this interim final rule, entities that were previously defined as “domestic reporting companies” are now exempted from the reporting requirements and do not have to report BOI to FinCEN, or update or correct BOI previously reported to FinCEN.
FinCEN said that, with limited exceptions, the interim final rule does not change the existing requirement for foreign reporting firms to file BOI reports, However, it has extended the deadline to file initial BOI reports, and to update or correct previously filed BOI reports, to 30 days from the date of the rule’s publication to allow foreign reporting firms more time to comply.
The interim final rule exempts foreign reporting companies from having to report the BOI of any U.S. persons who are a foreign reporting firm’s beneficial owners. It also exempts U.S. persons from having to offer the information to any foreign reporting firm for which they are a beneficial owner.
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