Resources
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March 4, 2025
The Corporate Transparency Act Or The Roller Coaster Continues
Authors: George Greatrex, Francis J. Sullivan
Last week we reported that the Corporate Transparency Act (“CTA”) is once again to be enforced by the Financial Crimes Enforcement Network (“FinCEN”) requiring the reporting of beneficial ownership information by all business entities in the United Sates. Essentially, under the CTA, the vast majority of companies in the United States would have been required to disclose the beneficial ownership information relating to who are the beneficial owners of a company, partnership, LLC etc. by the deadline date of March 21, 2025. Now, however, the Treasury Department announced on Sunday that it will not enforce any penalties or fines against US companies that fail to report beneficial ownership information as required by the CTA. It announced that proposed new rules by the Treasury Department would narrow the scope of the requirements of the CTA to only to apply to foreign reporting companies. This means that US companies will not be required to report beneficial ownership interest information, even after new rules are finalized. Both the American Bankers Association and the Treasury Secretary, Scott Bessent, believe that this decision by the Treasury Department represents a commonsense approach to the CTA enforcement while safeguarding national security. Hopefully, this will be the end of the Roller Coaster ride under the CTA.
