FinCEN Drops Reporting Requirements for U.S. Employers

Source: PA Chamber of Business and Industry

In a major shift, the Financial Crimes Enforcement Network (FinCEN) recently announced that U.S.-based companies will no longer be required to report beneficial ownership information (BOI) under the Corporate Transparency Act (CTA).

Originally designed to combat financial crime, the CTA had required both domestic and foreign companies to disclose their beneficial owners. The new rule eliminates that obligation for U.S. entities, instead focusing reporting requirements only on foreign companies operating in the U.S.

Foreign entities must adhere to new reporting deadlines:

• Registered before March 21, 2025: BOI reports are due within 30 days of that date.
• Registered on or after March 21, 2025: BOI reports are due within 30 days of receiving notice of effective registration.

This shift follows FinCEN’s February 27 announcement that it would suspend fines and penalties for companies failing to meet prior BOI reporting deadlines. It also aligns with the Treasury Department’s March 2 decision to pause CTA enforcement.

FinCEN is still seeking public comments before finalizing the rule later this year. For more information, see the official FinCEN announcement.

###

Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.