The American Bankers Association has endorsed bipartisan legislation to extend the Corporate Transparency Act’s beneficial ownership information reporting deadline by one year until Jan. 1, 2026. The House voted 408-0 today in favor of the bill.
The Protect Small Businesses from Excessive Paperwork Act [H.R. 736] was recently introduced in the House by Reps. Zach Nunn (R-Iowa), Tom Emmer (R-Minn.), Sharice Davids (D-Kan.) and Don Davis (D-N.C.). In a letter to the bill’s sponsors, ABA said the extension would give the Treasury Department’s Financial Crimes Enforcement Network sufficient time to review regulatory implementation of the CTA to ensure that Treasury meets the law’s objective of combating illicit finance without unduly burdening banks or small businesses, as Congress directed.
“Flawed implementation threatens the purpose and utility of the CTA,” ABA said. “Although the reporting rule went into effect over a year ago, many questions remain unanswered. At this time, FinCEN has only finalized two of the three rulemakings intended to implement the CTA. Banks are still in the dark about what their new regulatory obligations might be, and they remain obligated to collect now-duplicative information, an outcome Congress intended to avoid.”
BOI reporting is currently on hold due to several legal challenges against the CTA.
