The Financial Crimes Enforcement Network (FinCEN) repealed beneficial ownership reporting requirements for U.S. companies. This reversal ends mandates that first took effect in 2024 under the Corporate Transparency Act.
The original framework aimed to combat money laundering and sanctions evasion by creating a federal database of company owners. Domestic entities are no longer required to submit this ownership data to the federal government.
Foreign entities registered for U.S. business must still report information regarding their non-U.S. owners. This policy shift requires financial institutions to immediately adjust anti-money laundering (AML) and know-your-customer (KYC) compliance frameworks.