Key Changes in the Interim Final Rule
- Redefining Reporting Companies. Under the new rule, FinCEN has revised the definition of a “reporting company.” Now, only entities formed under the laws of a foreign country that have registered to do business in a U.S. state or Tribal jurisdiction by filing with a secretary of state or similar office will be considered “reporting companies.” Previously, both foreign and domestic entities were subject to reporting requirements.
- Exemption for Domestic Companies. All entities created in the United States, including those previously classified as “domestic reporting companies,” are now fully exempt from BOI reporting requirements. This means that U.S. businesses and their beneficial owners are no longer required to submit BOI reports to FinCEN.
- New Deadlines for Foreign Companies. Foreign entities that now meet the updated definition of a “reporting company” and do not qualify for an exemption must comply with new BOI reporting deadlines. However, these foreign companies will not be required to report U.S. persons as beneficial owners, and U.S. persons will not be obligated to report BOI for any such entity in which they have an ownership interest.
What This Means for Businesses
These changes significantly reduce compliance burdens for U.S. businesses and individuals, simplifying reporting requirements under the CTA. Companies operating domestically no longer need to file BOI reports, while foreign entities still subject to BOI requirements must comply with updated deadlines. For more information, visit the official FinCEN announcement: FinCEN News Release.
