FinCEN Ceases Beneficial Ownership Reporting

Share this post

As of August 11, 2026, FinCEN issued a final rule on BOI reporting. The rule removes the CTA reporting requirement for U.S. companies and U.S. persons. FinCEN will delete previously reported beneficial ownership information from the database. FinCEN also announced it would delete previously reported information by U.S. persons from the beneficial ownership information (BOI) database. Beneficial ownership information (BOI) refers to identifying information about the individuals who directly or indirectly own or control a company.

Under the National Defense Authorization Act, the President signed the CTA into law in 2021. It required individuals with an ownership interest in a limited liability company or BOI to disclose personal data to FinCEN. This aimed to deter illicit activity, including money laundering, tax fraud, drug trafficking, and terrorism financing by anonymous shell companies. The requirement escalated a wave of lawsuits and court decisions, along with heavy industry opposition, including from the American Institute of CPAs.

Who continues to report BOI under the final rule?

“Reporting companies” under the revised reporting requirements include only those entities that are formed under the law of a foreign country and have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office. There are multiple types of entities that are exempt from the reporting requirements. Foreign entities potentially falling under the definition of “reporting company” should carefully review the qualifying criteria before concluding whether the foreign company must report BOI.

Foreign entities that are reporting companies must continue to report beneficial ownership information (BOI) for foreign individuals. FinCEN has issued a set of frequently asked questions and will be updating guidance on FinCEN.gov.