The Financial Crimes Enforcement Network (FinCEN) recently announced that it is issuing a final rulepdf repealing the Beneficial Ownership Rule requirement for American entities and owners. Under the new final rule, all U.S. persons and entities are exempt from reporting under the Beneficial Ownership Rule. In September 2022, FinCEN issued the final Beneficial Ownership Information Rule, which required legal entities and owners to file with FinCEN as part of the Corporate Transparency Act. The purpose of the rule was to prevent illicit activities involving legal entities and to increase transparency of company ownership.
Under the new final rule, foreign entities and owners will still be required to report beneficial ownership information. FinCEN has also announced that it will delete previously reported information filed by U.S. persons who are now exempt from the reporting requirements.
To learn more about the FinCEN final rule, please see here. Also, to learn more about the newly issued Frequently Asked Questions (FAQs) related to the rule, please see herepdf.
