The U.S. Treasury Department's Financial Crimes Enforcement Network released an interim final rule that eliminates a beneficial ownership information (BOI) reporting requirement for U.S. businesses. The rule exempts domestic reporting companies and U.S. citizens and residents who are beneficial owners of foreign reporting companies.
Generally, securities brokers or dealers, licensed insurance producers, public accounting firms, and several other types of companies have always been exempt from reporting requirements under the Corporate Transparency Act. But prior to the new rule, many of the business-owner clients of NAIFA members were likely to be subject to the requirements. The new rule requires foreign reporting companies to submit BOIs within 30 days once the rule is published in the Federal Register.
NAIFA has worked with a coalition of Main Street business advocates to protect up to 32 million U.S. small businesses from more stringent reporting requirements. NAIFA has signed on to a letter to Treasury Secretary Scott Bessent applauding the direction the Department has taken with the new interim final rule.