Alert: On Friday March 21st, the Financial Crimes Enforcement Network (FinCEN) announced that domestic companies are now exempt from all CTA reporting requirements. Foreign companies registered to do business in the U.S. that do not qualify for an exemption still must file a BOI report.
As anticipated in our most recent Corporate Transparency Act (CTA) blog, FinCEN issued its interim final rule, significantly reducing the burdens imposed by the original CTA reporting requirements on U.S. businesses.
Here’s what businesses need to know:
- Domestic companies are no longer required to file a BOI report. If you have already filed, you do not need to update or correct any information.
- Foreign companies registered to do business in the U.S. that do not qualify for an exemption are still required to file a BOI report, but with two important exemptions:
- Foreign companies are exempt from reporting beneficial ownership information for any U.S. persons who are beneficial owners.
- U.S. persons are exempt from providing their beneficial ownership information to foreign companies.
If your foreign company is registered to do business in the U.S. and does not qualify for an exemption, you must file within 30 days after the publication of FinCEN’s March 21 Rule in the Federal Register or 30 days after the company’s registration to do business in the United States—whichever comes later.
Currently, FinCEN is accepting comments on this interim final rule, with the intent to issue a final rule later this year. It’s also worth noting that FinCEN has announced it will not be enforcing penalties for noncompliance.
FLB will continue to follow any legal updates concerning the CTA and report FinCEN’s final rule. If your business is required to file a BOI and needs legal support, please reach out to one of our corporate attorneys in Allentown, PA.
