The U.S. Department of the Treasury has announced the temporary suspension of the Corporate Transparency Act (CTA) for U.S. citizens and domestic companies.
Enacted in 2021, the CTA requires legal entities to report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) to combat Money Laundering and Terrorism Financing.
This suspension responds to concerns about the administrative burden imposed on small businesses and potential conflicts with state laws. During this period, the Treasury will review the regulation and collaborate with stakeholders to develop solutions that balance the need for transparency with concerns about privacy and operational burden.
The Financial Crimes Enforcement Network (FinCEN) is expected to issue an interim final rule by March 21, 2025, extending deadlines and providing updated guidance for compliance with the Beneficial Ownership Information (BOI) requirements under the CTA. With the publication of this new rule, the current suspension is expected to end, and new deadlines and guidelines will be established to fulfill the corresponding obligations.
