The final rule took effect on August 14, 2026.
The BOI reporting requirement was introduced under the Corporate Transparency Act (CTA). FinCEN’s original rules applied both to companies created in the United States and to foreign entities registered to do business in the country. They were required to report identifying information about the company itself and its beneficial owners and, in certain cases, about individuals involved in the company’s formation or registration.
In March 2025, FinCEN issued an interim final rule revising these requirements by exempting companies created in the United States from the definition of reporting companies. U.S. persons were also exempted from the requirement to report BOI with respect to foreign companies in which they are beneficial owners. The new final rule makes these exemptions permanent.
As a result, BOI reporting requirements now apply only to foreign companies registered to do business in the United States. Such companies are not required to report U.S. persons as beneficial owners.
The final rule also provides additional exemptions. In particular, foreign companies are no longer required to report U.S. person company applicants, while U.S. persons who have obtained a FinCEN identifier are exempt from the obligation to update or correct the information originally provided to obtain that identifier.
In addition, FinCEN announced that it will delete previously reported information from the BOI database concerning beneficial owners, company applicants and holders of FinCEN identifiers where the agency has reason to believe that the individuals concerned are U.S. persons.
FinCEN says the revisions are intended to reduce the regulatory burden on U.S. businesses.
The Corporate Transparency Act itself remains in force: the changes have been made to FinCEN’s implementing regulations. However, Congress is currently considering H.R. 425, the Repealing Big Brother Overreach Act, which would codify a similar approach in federal law. In the version reported by the House Committee on Financial Services, BOI reporting requirements would be retained only for foreign companies registered to do business in the United States, while FinCEN would be required to delete previously collected information on individuals and entities that would no longer be subject to the reporting requirements.
