The Treasury Department has finalized a rule that exempts U.S. firms and individuals from reporting beneficial ownership information to its Financial Crimes Enforcement Network (FinCEN).
"Treasury is eliminating a burdensome reporting requirement for millions of law-abiding business owners without compromising our national security," Treasury Secretary Scott Bessent stated in the announcement on Tuesday.
Beneficial owners are identified as anyone who owns at least 25% of a business or exerts "substantial control" over the entity.
Additionally, foreign pooled investment vehicles registered in the U.S. are now exempt from reporting the beneficial ownership information of U.S. persons who control them.
However, foreign reporting companies must still disclose beneficial ownership information for foreign individuals.
