Treasury Department Derails Detrimental Rule

The Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule on March 21, 2025, which revises the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA). The complex, intrusive, and overly broad application of federal information collection has been roundly criticized for the past few years since passage of the CTA.  CIRT, along with members of the “Main St.” Employers group, applauded the Administration for taking decisive action in a timely manner to narrow the scope of the entities required to report BOI by exempting domestic companies and U.S. persons who are beneficial owners of foreign reporting companies.  By so doing, the rule rightfully alleviates the substantial compliance burden, while shifting to a risk-based enforcement protocol – that focuses the effort around a reasonable class of entities (i.e., those posing genuine risks of money laundering and other illicit activities).