The Trump administration finalized a rule exempting U.S. companies and individuals from reporting beneficial ownership information to the Treasury Department's financial crimes unit, rolling back requirements established under a 2021 law. Foreign reporting companies will still need to disclose beneficial ownership for foreign individuals.
This regulatory change eases reporting burdens for U.S. businesses but may reduce transparency in combating illicit finance and money laundering, potentially impacting efforts to track financial crimes.
The Trump administration has finalized a rule that exempts U.S. companies and individuals from reporting beneficial ownership information to the Treasury Department's Financial Crimes Enforcement Network (FinCEN). This move effectively rolls back reporting requirements that were part of a 2021 law designed to combat illicit finance.
Under the new rule, foreign companies will no longer need to disclose beneficial ownership information for U.S. individuals who assisted them in registering to do business in the United States. Additionally, foreign pooled investment vehicles registered in the U.S. are exempted from reporting the beneficial ownership details of any U.S. person controlling the vehicle.
Treasury Secretary Scott Bessent stated that the administration is removing a burdensome reporting requirement for millions of business owners without compromising national security. The Treasury Department also confirmed that previously reported beneficial ownership information submitted by Americans will be deleted from the government's database.
FinCEN will continue to require foreign reporting companies to disclose beneficial ownership information pertaining to foreign individuals. The definition of a beneficial owner includes anyone with at least a 25% ownership interest in a business or someone who exercises "substantial control" over the entity.