FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons
On March 21st, the Financial Crimes Enforcement Network (FinCEN) issued an Interim Final Rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act.
Since the Interim Final Rule revises the definition of reporting company to mean only those entities formerly known as foreign reporting companies, FinCEN now exempts entities previously known as domestic reporting companies from BOI reporting requirements.
Pursuant to the Interim Final Rule, all entities created in the United States and their beneficial owners will be exempt from the requirement to report beneficial ownership information to FinCEN.
Foreign entities that meet the new definition of a reporting company and do not qualify for an exemption from the reporting requirements must report their BOI to FinCEN under new deadlines:
· Reporting companies registered to do business in the United States before the date of publication of the Interim Final Rule must file BOI reports no later than 30 days from that date.
· Reporting companies registered to do business in the United States on or after the date of publication of the Interim Final Rule have 30 calendar days to file an initial BOI report after receiving notice that their registration is effective.
According to the Interim Final Rule, however, these foreign entities will not be required to report any U.S. persons as beneficial owners, and U.S. persons will not be required to report beneficial ownership information with respect to any such entity for which they are a beneficial owner.
