File photo: US President Donald Trump (Picture credit: ANI)
The US treasury department announced Sunday that it will no longer enforce the
Corporate Transparency Act
(CTA) and its associated
Beneficial Ownership Information
(BOI) reporting requirements.
The decision effectively suspends penalties for US citizens and domestic companies, shifting enforcement efforts toward foreign businesses.
The move was welcomed by US President Donald Trump. He celebrated the decision on Truth Social, calling the BOI rule “outrageous and invasive.”
He wrote, “Exciting news! The treasury department has announced that they are suspending all enforcement of the outrageous and invasive Beneficial Ownership Information (BOI) reporting requirement for US citizens. This Biden rule has been an absolute disaster for small businesses nationwide. Furthermore, treasury is now finalising an emergency regulation to formally suspend this rule for American businesses. The economic menace of BOI reporting will soon be no more.”
The BOI rule, introduced under the CTA, required businesses to disclose details about their owners to the treasury’s
financial crimes enforcement network
(FinCEN) to curb money laundering and financial crimes.
However, according to Irish Star, the enforcement of these requirements had already faced multiple delays due to legal challenges.
As per Fox Business, treasury secretary
Scott Bessent
supported Trump’s stance, calling the decision “a victory for common sense.”
He added, “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
The treasury department also confirmed on X that “penalties or fines associated with BOI will not be enforced,” and clarified that the agency will issue a new proposed rule to limit the reporting requirement to foreign companies only.
The CTA, which was signed into law in January 2021, was initially set to take effect in January 2024 but repeated federal court rulings delayed its implementation. The law aimed to increase
financial transparency
by making it harder for criminals to use shell companies for illicit activities such as money laundering and drug trafficking.
Trump’s latest policy shift aligns with his broader economic agenda, which includes
regulatory rollbacks
and spending cuts ranging from $1.5 trillion to $2 trillion, according to Fox Business.
