The U.S. Department of Treasury has announced adjustments to the enforcement of the Corporate Transparency Act (CTA) and upcoming changes to its rules. The department stated that it will not impose penalties or fines related to the beneficial ownership information (BOI) reporting rule within the current regulatory deadlines. Additionally, the Treasury plans to propose a rulemaking that will limit the rule's application exclusively to foreign reporting companies. As a result, no penalties or fines will be enforced against U.S. citizens, domestic reporting companies, or their beneficial owners.
The CTA was enacted by Congress as part of the 2021 National Defense Authorization Bill. It introduced significant corporate ownership reporting requirements for businesses operating in or from the United States. This legislation aims to combat money laundering by mandating businesses to register and disclose extensive ownership details to federal authorities.
These changes are considered advantageous for businesses in the Greater Louisville region by reducing their compliance obligations. For further information on these changes and their potential impact on businesses, individuals are encouraged to visit the US Chamber.