FinCEN permanently ends beneficial ownership reporting for US companies

FinCEN issued a final rule on August 11 permanently removing the requirement for US companies and US persons to report beneficial ownership information under the Corporate Transparency Act's implementing regulations and said it will delete previously reported US-person information from its database. Only certain foreign entities registered to do business in the United States remain reporting companies, and they generally report only foreign beneficial owners.

ASSESSMENT

The rule narrows an existing federal database rather than abolishing beneficial ownership reporting. For families the practical effect will likely be a smaller concentrated store of US ownership data, not necessarily less scrutiny of ownership and control.

TAKEAWAYS

• Under the rule, US entities that filed previously have no further filing or update obligation, but families should have expert counsel confirm any remaining duties exist

  
  

Source: FinCEN