The U.S. Department of Treasury announced changes to enforcement of the Corporate Transparency Act (CTA) and forthcoming department-led rule changes to the Act. In its announcement the treasury said it will not enforce any penalties or fines associated with the beneficial ownership information (BOI) reporting rule under the existing regulatory deadlines. The Treasury also announced it will issue a proposed rulemaking that will narrow the rule’s scope to only foreign reporting companies. With these incoming rules in mind, the Treasury will not enforce any penalties or fines against U.S. citizens, domestic reporting companies, or their beneficial owners.<\/p>\n
The CTA was passed by Congress as part of the 2021 National Defense Authorization Bill and implemented sweeping new corporate ownership reporting requirements for companies that are based in or conduct business in the United States. The law was designed as an anti-laundering effort and requires businesses to register and disclose expanded ownership information to the federal government.<\/p>\n