FinCEN Announces No Penalties for Late Beneficial Ownership Reporting

The Financial Crimes Enforcement Network has announced it will not impose penalties or fines on companies that fail to file or update their beneficial ownership information (BOI) under the Corporate Transparency Act.

The beneficial ownership rule of the Corporate Transparency Act requires certain new and existing small corporations and limited liability companies to report information about their beneficial owners.

The FinCEN says no enforcement actions will be taken until an interim final rule takes effect and new relevant due dates in the interim final rule have passed. An interim final rule to extend BOI reporting deadlines will be issued no later than March 21, 2025, according to the FinCEN.

This announcement coincides with the U.S. Treasury’s commitment to reducing regulatory burden on businesses while recognizing the need for guidance and clarity on the subject.