Treasury Dept Scraps CTA Reporting for US Companies
A final rule effective August 14, 2026, permanently removes Corporate Transparency Act beneficial ownership reporting requirements for U.S. companies and persons, a major reversal of a key anti-corruption measure.
The U.S. Department of the Treasury has issued a final rule that permanently eliminates Corporate Transparency Act (CTA) beneficial ownership information (BOI) reporting requirements for U.S. companies and persons, effective August 14, 2026. This move represents a significant reversal of a key anti-corruption law passed in 2020, which aimed to prevent the use of anonymous shell companies for money laundering and other illicit activities by requiring entities to disclose their ultimate beneficial owners to the Financial Crimes Enforcement Network (FinCEN).
Sophisticated counsel and their clients should understand that this removes a substantial compliance burden for millions of U.S. businesses. The Treasury Department stated that FinCEN will delete BOI data previously submitted by U.S. persons. This policy shift dramatically alters the corporate transparency landscape in the United States and may impact international perceptions of the U.S. commitment to combating financial crime. While the reporting obligation is gone for domestic entities, practitioners should note that certain foreign entities registered to do business in the U.S. remain subject to modified BOI reporting rules under the updated guidance.