FinCEN to Permanently End Beneficial Ownership Reporting for US Companies

The US Financial Crimes Enforcement Network (FinCEN) plans to permanently remove beneficial ownership information reporting requirements for US companies and US persons under the Corporate Transparency Act.

The recently announced final rule makes permanent the exemptions introduced on an interim basis in March 2025, meaning millions of US businesses will no longer be required to identify their beneficial owners to FinCEN.

FinCEN has also announced that it plans to delete previously submitted information that it reasonably believes relates to US persons, including beneficial owners, company applicants, and holders of FinCEN IDs. The agency said it would work with the National Archives and Records Administration to ensure the deletion process complies with federal records laws.

US persons who obtained FinCEN IDs will no longer need to correct or update their information. Foreign companies will also be exempt from reporting US persons who helped register them to do business in the country, while foreign pooled investment vehicles will not have to disclose US persons who control them.

Reporting obligations will continue to apply to certain entities formed outside the United States and registered to do business in a US state or Tribal jurisdiction. However, these companies will only be required to report beneficial ownership information concerning foreign individuals.

Secretary of the Treasury Scott Bessent described the change as a reduction in “red tape” for small businesses, saying: “Treasury is eliminating a burdensome reporting requirement for millions of law-abiding business owners without compromising our national security.”

Although reporting has been substantially narrowed, FinCEN notes that covered financial institutions must continue collecting beneficial ownership information from legal-entity customers under the Customer Due Diligence Rule as part of their AML/CFT programs.

The rule will take effect when it is published in the Federal Register. FinCEN had not specified a publication date at the time of writing.