FinCEN’s New Interim Rule on the Corporate Transparency Act: What It Means for Your Business

On Friday, March 21, 2025, the U.S. Department of the Treasury and FinCEN introduced an interim final rule that brings a major update to the Corporate Transparency Act (CTA). This rule substantially narrows the scope of the Beneficial Ownership Information (BOI) reporting requirements.

Key Takeaways 

U.S. citizens and domestic reporting companies are no longer required to report BOI to FinCEN under the interim reporting rule, which specifically targets foreign entities and their foreign beneficial owners. Foreign entities and their foreign beneficial owners are still required to report BOI information to FinCEN, which has set a new compliance deadline of April 20, 2025. 

What This Means for Your Business 

For U.S.-based companies, for now this interim rule provides relief from reporting obligations. However, it’s important to note that while the interim rule reduces the scope of the law, the CTA’s legal framework remains intact. This means that while U.S. businesses are currently exempt from reporting under this rule, the final reporting rule (expected later this year) or any other subsequent reporting rule may still require the disclosure of BOI information for U.S. individuals or entities. As of now, domestic individuals and entities do not need to address these complexities, but they should remain aware that future requirements may shift. 

Looking Ahead 

With the final rule still in development, businesses should continue to monitor any changes, as new reporting obligations may change quickly and follow potentially changing political desires and circumstances. While the interim rule provides temporary relief, the long-term impact of the CTA remains uncertain.  

We will continue to track these developments and provide timely updates to help you stay compliant. If you have any questions about how these changes may affect your business, feel free to reach out to us for further guidance.