On February 27, 2025, FinCEN announced that it would not issue fines or penalties or take any other enforcement action against any companies based on any failure to file or update beneficial ownership information (BOI) reports under the Corporate Transparency Act (CTA) by the current deadlines.
Subsequently, the U.S. Department of the Treasury, of which FinCEN is a bureau, issued a press release on March 2, 2025 stating that, with respect to the CTA, not only will it not enforce any penalties or fines associated with the BOI reporting rule under the existing deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will issue proposed rulemaking to narrow the scope of the BOI reporting rule so that only certain foreign companies registered to do business in the U.S. would be required to submit BOI information.
Accordingly, penalties are not presently being issued for domestic entities that opt not to report.
Please note that unless the CTA itself is amended or repealed, there is some speculation that the administration’s failure to fully implement the reporting requirements set forth in the statute could be challenged in court. We will continue to monitor this situation.
