WASHINGTON — The Treasury Department on Aug. 11 finalized a rule permanently exempting U.S. companies and individuals from reporting beneficial ownership information to federal authorities, rolling back a key piece of the Biden administration's Corporate Transparency Act.
Treasury Secretary Scott Bessent said the action represents "a victory for common sense and American small businesses." He added that President Trump "promised to cut red tape, and this final rule delivers."
Under the new policy, U.S. companies and individuals no longer must inform the Treasury Department's Financial Crimes Enforcement Network (FinCEN) about their owners. FinCEN will also delete previously reported data from Americans in its beneficial ownership database.
Foreign reporting companies must still disclose beneficial ownership information for foreign individuals, the department said.
The original requirement stemmed from the Corporate Transparency Act, enacted in 2021 to force shell companies to disclose their owners. FinCEN was tasked with enforcing the provisions as part of broader anti-money laundering efforts. Estimates put the rule's reach at roughly 32 million businesses, including corporations and limited liability companies.
Businesses and owners that failed to comply faced civil fines up to $591 per day of non-filing, criminal fines up to $10,000 and up to two years in prison for submitting false information or willful non-compliance.
Former Treasury Secretary Janet Yellen had supported the FinCEN rules in 2024, saying they would "eliminate critical vulnerabilities in our financial system" by targeting illicit finance enabled by opaque corporate structures.
The final rule formalizes exemptions first outlined in an interim rule the Trump administration issued in March 2025, when Treasury said it would not enforce the Corporate Transparency Act against U.S. citizens, domestic reporting companies or their beneficial owners.
