The Financial Crimes Enforcement Network (FinCEN) confirmed it will purge existing records for entities and individuals it identifies as U.S. persons, including those linked to passports or driver’s licenses. While domestic reporting ends, foreign entities operating as reporting companies remain obligated to disclose beneficial ownership information for foreign individuals. Treasury Secretary Scott Bessent framed the move as a victory for small businesses, emphasizing the administration's commitment to reducing regulatory burdens without sacrificing national security.
US Treasury Removes Beneficial Ownership Reporting for Domestic Firms
The U.S. Department of the Treasury has finalized a rule permanently exempting domestic companies and individuals from beneficial ownership reporting requirements under the Corporate Transparency Act. This decision marks a significant shift in federal regulatory policy, effectively reversing a mandate introduced at the start of 2025 by the previous administration.
The final rule formalizes a temporary rollback initiated in March. This development arrives amidst a broader international debate over the balance between financial transparency and personal privacy. While the OECD recently granted the U.S. a "Largely Compliant" status regarding transparency standards, global approaches remain inconsistent. The European Union, for instance, previously retreated from broad public disclosure mandates following a 2022 ruling by its Court of Justice that prioritized privacy concerns over open access to beneficial ownership registries.
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