FinCEN Narrows Scope of Beneficial Ownership Reporting Requirements
In a significant regulatory shift, the Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule that substantially alters reporting obligations under the Corporate Transparency Act (CTA). The new rule, effective March 26, 2025, exempts domestic entities and U.S. persons from the requirement to report beneficial ownership information (BOI) to FinCEN.
Key Changes:
- Domestic entities and U.S. persons are no longer required to file BOI reports
- Non-exempt foreign reporting companies must still file BOI reports by April 25, 2025
- Public comments on the interim rule are being accepted until May 27, 2025
This regulatory update significantly narrows the scope of entities subject to CTA reporting requirements. The move is expected to reduce compliance burdens for many U.S. businesses while maintaining oversight on foreign entities operating in the country.
Real estate professionals and investors should take note of these changes, as they may impact reporting obligations for domestic property-owning entities and investment structures. While the exemption provides relief for many, it’s crucial to stay informed about potential further modifications as FinCEN reviews public comments and prepares to issue a final rule later this year.
As the regulatory landscape continues to evolve, real estate stakeholders are advised to consult with legal and compliance experts to ensure they remain in full compliance with all applicable regulations.
References:
- https://www.nysar.com/news/enews-weekly/
- https://www.law360.com/realestate
- https://www.gresb.com/nl-en/insights/gresb-march-update-assessments-opening-on-april-1-new-score-contribution-dashboard-for-real-estate-participants-2025-gresb-ap-for-real-estate-infrastructure/
- https://www.bankrate.com/home-equity/home-equity-news-recession-week-of-03-28-2025/
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