Monday, January 27th, 2025, the US Treasury Building in Washington, DC, USA.
Stefani Reynolds | Bloomberg | Getty Images
The U.S. Treasury Department announced on Sunday that it would not enforce any fines or fines related to Biden-era “beneficial ownership information” or BOI.
The BOI report, enacted through the Corporate Transparency Act in 2021 to combat illegal finances and the formation of shell companies, requires small businesses to identify who own or manage the company directly or indirectly, into the Ministry of Finance’s financial crime enforcement network known as Fincen.
After a previous court delay, the Treasury Department set a March 21 deadline to comply with a civil penalty of $591 a day or adjust for risk risk, inflation, or prison criminal fines up to $10,000 and up to two years. Federal estimates show that reporting requirements could apply to around 32.6 million companies.
More details from personal finance:
Tax credit, free universities: how the town of Kansas seduces people to move there
Social Security may see “absence of benefits” by Doge: Former committee
You can lower your tax amount in 2024, or boost your refund with these moves
According to Fincen, the rule was “instituted to make it difficult for bad actors to hide or profit from their illegal profits through shell companies and other opaque ownership structures.”
In addition to not enforce BOI penalties and fines, the Ministry of Finance said it would issue proposed regulations to apply the rules only to foreign reporting companies.
President Donald Trump praised the news on a Truth Social Post Sunday night, describing the reporting rules as “outrageous invasive and invasive” and “an absolute disaster” for small businesses.
Other experts say the Treasury decision could have an impact on national security.
“The decision threatens to turn the United States into a magnet for foreign criminals, from drug cartels to fraudsters to terrorist groups,” Scott Graytuck, director of advocacy for anti-corruption groups, said in a statement.
Greg Iacurci contributed to this report.
