FinCEN Scraps BOI Reporting

After five years of uncertainty and debate, we can finally close the book on the Corporate Transparency Act’s beneficial ownership reporting requirements.

On August 11, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a long-awaited final rule that permanently removed the requirement for U.S. companies and U.S. persons to report beneficial ownership information under the Corporate Transparency Act. Congress passed the Corporate Transparency Act as part of the fiscal 2021 National Defense Authorization Act. Its goal was to stop bad actors from using hidden company structures for money laundering, tax fraud, and sanctions evasion.

The rule exempts U.S. persons who have obtained FinCEN IDs from any obligation to update or correct the information they originally provided to FinCEN. All information previously reported by U.S. persons will be deleted from FinCEN's beneficial ownership information database. Under the final rule, foreign entities that are reporting companies are required to report beneficial ownership information for foreign individuals.

Some view the final rule as a victory for American small businesses. Others think the decision is an unfortunate one, preventing a crackdown on illicit financial schemes. The final rule will become effective upon publication in the Federal Register.