(FinCEN) has announced a temporary suspension of enforcement actions related to Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA)
- Mar 7
- 2 min read
The Financial Crimes Enforcement Network (FinCEN) has announced a temporary suspension of enforcement actions related to Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). This decision means that businesses will not face fines or penalties for failing to file or update BOI reports until new regulations are established. FINCEN.GOV
Initially, the CTA mandated that millions of U.S. businesses report their beneficial ownership information to FinCEN to enhance transparency and combat illicit financial activities. Non-compliance could result in civil penalties of up to $500 per day, with criminal fines reaching $10,000 and imprisonment for up to two years. SECURECOMPLIANCE.US
However, FinCEN's recent announcement indicates a shift in enforcement. The agency stated that it will not impose any fines, penalties, or take enforcement actions against companies that fail to file or update BOI reports by the current deadlines. This pause will remain in effect until an interim final rule is issued, establishing new reporting deadlines.
FinCEN plans to issue this interim final rule by March 21, 2025, which will extend BOI reporting deadlines and provide updated guidance. The agency also intends to solicit public comments on potential revisions to existing BOI reporting requirements to minimize the burden on small businesses while ensuring the information collected is useful for national security and law enforcement purposes.
This development has garnered attention from various stakeholders. Advocacy groups express concern that suspending BOI enforcement could make the U.S. more susceptible to illicit activities. Conversely, some small business owners view the reporting requirements as burdensome and invasive, welcoming the enforcement pause.
In summary, while BOI reporting requirements remain in place, FinCEN has temporarily halted enforcement actions. Businesses are advised to stay informed about forthcoming regulations and adjust their compliance efforts accordingly.
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