The Treasury Department announced Sunday that it will not enforce any penalties or fines against U.S. companies for failing to report beneficial ownership information as required by the Corporate Transparency Act. Instead, it will propose new rulemaking to narrow the scope of the requirement to only foreign reporting companies.
The Financial Crimes Enforcement Network last week said it will not issue fines or penalties against companies that fail to report their BOI by the current deadline of March 21. BOI collection was previously suspended because of two lawsuits challenging the constitutionality of the Corporate Transparency Act, but the preliminary injunctions against enforcement in both cases have been lifted.
The Treasury Department announcement means U.S. companies will not be required to report BOI, even after a new rule is finalized.
“This is a victory for common sense,” Treasury Secretary Scott Bessent said. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
In a statement on X, the American Bankers Association said it appreciates Bessent’s commonsense approach to Corporate Transparency Act enforcement and safeguarding national security. ABA added that it looks forward to working with Bessent “on rule changes to reduce burden on small businesses and the banks that serve them while keeping the U.S. financial system safe.”
