Editor’s Note: Please refer to this more recent blog post for the newest information.
In a significant shift on Friday, March 21, the Financial Crimes Enforcement Network
(FinCEN) has revised its Beneficial Ownership Information (BOI) reporting rules, reducing compliance burdens for U.S. businesses. Under a new interim final rule, only foreign entities are required to report BOI, while domestic companies are now exempt.
What’s Changing?
- U.S. businesses and individuals are no longer required to submit BOI reports to FinCEN.
- Foreign entities registered to operate in the U.S. still need to file BOI reports.
- Foreign companies do not have to disclose BOI for their U.S. owners.
- U.S. beneficial owners are not obligated to provide BOI to foreign companies.
Updated Deadlines for Foreign Entities
- Foreign entities that were previously expected to report by last Friday now have an extra 30 days to comply.
- Going forward, newly registered foreign entities must submit their BOI reports within 30 days of registration approval.
Next Steps
FinCEN is currently accepting comments on the new rule and plans to evaluate the exemptions before issuing a final ruling later this year.
