The US Treasury building in Washington, DC.
The U.S. Department of the Treasury has issued an interim final rule removing the requirement for U.S. companies and individuals to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) under the Corporate Transparency Act (CTA). The change followed a March 2 announcement by the Treasury stating it would not enforce penalties or fines related to BOI reporting for domestic entities.
Under the interim rule, entities created in the United States, formerly referred to as “domestic reporting companies,” and their beneficial owners are now exempt from BOI reporting. The rule also specifies that U.S. persons will not be required to report BOI in relation to any foreign entity for which they are a beneficial owner.
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Foreign entities that qualify as “reporting companies” and do not fall under any exemption must still report their BOI to FinCEN under new deadlines. However, they will not be required to report U.S. persons as beneficial owners.
This decision has immediate implications for credit unions, which had been preparing to navigate the new BOI reporting requirements as part of member due diligence processes, especially for business accounts. While the change reduces the regulatory burden in the short term, credit unions must continue to comply with existing Bank Secrecy Act and Customer Due Diligence requirements.
FinCEN is accepting public comments on the interim final rule and intends to issue a final version later this year.
The CTA, enacted in 2021, hopes to increase financial transparency and prevent illicit finance by requiring certain entities to report their beneficial owners. The Treasury’s reversal of the domestic reporting requirement marked a significant shift in the implementation of the law, with ongoing developments expected as FinCEN evaluates stakeholder input.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
