Significant Update on BOI Reporting: Treasury Department Announces Major Changes

On March 2, 2025, the U.S. Department of the Treasury announced a major shift in the enforcement of Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). This update significantly impacts U.S. businesses, as it eliminates penalties for non-compliance and shifts BOI reporting obligations primarily to foreign reporting companies.

Key Changes Announced by the Treasury Department

1. No Penalties for U.S. Entities
   • The Treasury Department has confirmed that it will not enforce any penalties or fines related to the BOI reporting rule under the existing regulatory deadlines.
   • Even after the forthcoming rule changes take effect, U.S. citizens, domestic reporting companies, and their beneficial owners will not face enforcement actions for non-compliance.
2. Narrowing the Scope of BOI Reporting
   • The Treasury will issue a proposed rulemaking aimed at limiting BOI reporting requirements to foreign reporting companies only.
   • This change is designed to ease the regulatory burden on small businesses and ensure that the rule better aligns with public interest goals.

What This Means for Businesses

For U.S. businesses and their owners, this announcement provides relief from the previously strict BOI reporting requirements. However, foreign reporting companies operating in the U.S. should prepare for continued compliance obligations.

If your business was initially subject to BOI reporting, it is essential to stay informed about the upcoming rulemaking process and any additional updates from FinCEN and the Treasury Department.

How OMC GROUP Can Help

At OMC GROUP, we are closely monitoring these regulatory developments and are prepared to assist businesses in navigating the changes. Our services include:

• Assessing whether your entity is still subject to BOI reporting under the revised rules.
• Helping businesses stay compliant with evolving Treasury Department regulations.
• Providing guidance and support for foreign reporting companies that may still be required to file BOI reports in the future.

As these regulatory changes unfold, OMC GROUP remains committed to ensuring that businesses understand their obligations and take the necessary steps to remain compliant.

For more information or assistance, reach out to our team today!