Trump Administration Exempts US Firms From Beneficial Ownership Reporting

The United States Department of the Treasury finalized a rule on Tuesday that exempts U.S. companies and individuals from reporting beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This action rolls back reporting requirements established by a 2021 law designed to combat money laundering, anti-corruption, and illicit finance.

Under the new rule, FinCEN will delete previously reported data provided by Americans. The agency will no longer require foreign companies to report Americans who assisted them in registering to do business within the United States. Additionally, foreign pooled investment vehicles registered in the U.S. are now exempt from reporting beneficial ownership information for U.S. persons who control the vehicle.

Treasury Secretary Scott Bessent stated that the department is eliminating a burdensome reporting requirement for millions of law-abiding business owners without compromising national security. Despite these exemptions, foreign reporting companies are still required to disclose beneficial ownership information for foreign individuals.