The Financial Crimes Enforcement Network has issued a final rule clarifying that certain telecommunications service providers qualify as “regulated public utilities” and are exempt from the Corporate Transparency Act’s beneficial ownership information reporting requirements.
The CTA exempts 23 categories of entities from the definition of “reporting companies,” and exempt entities do not have reporting requirements. One exemption is for “a public utility that provides telecommunications services, electrical power, natural gas, or water and sewer services within the United States.” The revisions to the final rule resolve the ambiguities in the definition of “telecommunications service” utility provider.
Because the final rule is a technical clarification that does not change the scope of the public utility exemption, FinCEN believes it is unnecessary to solicit comment on the rule, the agency said.
