On March 2, 2025, the U.S. Treasury Department announced that it will no longer be enforcing any penalties or fines against U.S. citizens, domestic reporting companies or their beneficial owners with respect to the Corporate Transparency Act (the CTA). The press release further stated that the Treasury Department will be issuing a proposed rulemaking that will narrow the scope of the rule to apply to only foreign reporting companies.
The notice states that FinCEN will not only suspend enforcement against U.S. citizens, domestic reporting companies and their beneficial owners, but that FinCEN will eventually modify the CTA so that it applies only to foreign reporting companies.
FinCEN has announced that:
- it will no longer enforce any penalties or fines against U.S. citizens, domestic reporting companies or their beneficial owners;
- enforcement of the CTA against foreign reporting companies will remain paused until the “interim final rule” has been issued; and
- it will be issuing a proposed rulemaking that will narrow the scope of the CTA so that it will apply only to foreign reporting companies
