Financial Crimes Enforcement Network removes beneficial ownership reporting for U.S. companies and U.S. persons and sets 30-day filing deadlines for foreign entities

The Financial Crimes Enforcement Network issued an interim final rule under the Corporate Transparency Act that eliminates the requirement for U.S. companies and U.S. persons to submit beneficial ownership information (BOI) reports to FinCEN, limiting BOI reporting to a narrower set of foreign entities registered to do business in the United States. The rule revises the definition of “reporting company” to cover only entities formed under foreign law that have registered to do business in any U.S. State or Tribal jurisdiction by filing with a secretary of state or similar office, and it exempts entities previously treated as “domestic reporting companies” along with their beneficial owners. For foreign reporting companies that are not otherwise exempt, BOI reporting must be made within 30 days from the rule’s publication if the entity registered before that date, or within 30 calendar days after receiving notice that registration is effective if the entity registers on or after that date. These foreign entities are not required to report any U.S. persons as beneficial owners, and U.S. persons are not required to report BOI in relation to such entities. FinCEN is accepting comments on the interim final rule and intends to finalize it this year.