The information contained in this document is marketing material and for informational purposes only. The information contained in this document is presented without any warranty or representation as to its accuracy or completeness and all implied representations or warranties of any kind are hereby disclaimed. Recipients of this document, whether clients or otherwise, should not act or refrain from acting on the basis of any information included in this document without seeking appropriate professional advice. The provision of the information contained in this document does not establish any express or implied duty or obligation between Citco and any recipient and neither Citco nor any of its shareholders, members, directors, principals or personnel shall be responsible or liable for results arising from the use or reliance of the information contained in this document including, without limitation, any loss (whether direct, indirect, in contract, tort or otherwise) arising from any decision made or action taken by any party in reliance upon the information contained in this document. © The Citco Group Limited, December 2024.
United States – FinCEN’s Updated BOI Reporting Requirements
FinCEN has released a significant interim final rule regarding Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act (CTA).
This update brings important changes to reporting obligations for both domestic and foreign entities.
Key Changes in Reporting Requirements
Domestic Reporting Companies
- Temporary suspension of penalties and enforcement actions
- Exemption from mandatory BOI reporting requirements
- Voluntary reporting still recommended due to potential future changes
Foreign Reporting Companies
- Mandatory reporting requirements remain in effect
- New definition: Entities formed under foreign law and registered to do business in U.S. states or tribal jurisdictions
- Strict compliance deadlines enforced with penalties for non-compliance
Critical Deadlines
- Existing foreign entities: Must file by April 20, 2025
- New foreign registrations: 30-day filing window after registration approval
Compliance Recommendations
For Domestic Companies:
- Consider voluntary filing despite enforcement suspension
- Monitor ongoing developments and potential regulatory changes
- Prepare for possible year-end updates in final rule
For Foreign Companies:
- Immediate action required for compliance
- Ensure accurate and timely submission of BOI reports
- Maintain documentation of filing
Looking Ahead
FinCEN is expected to issue a final rule by year-end 2025, which may introduce additional changes to reporting requirements. Companies are advised to stay informed of regulatory developments and maintain preparation for potential compliance obligations.
For assistance with BOI filing, contact our expert team at mercator@citco.com.
Read our Key Insights and FAQs on the US Corporate Transparency Act.
