The Financial Crimes Enforcement Network (FinCEN) announced today that it will not impose fines, penalties, or enforcement actions against businesses that fail to file or update beneficial ownership information (BOI) reports under the Corporate Transparency Act by current deadlines. Enforcement will remain on hold until a forthcoming interim final rule takes effect and new reporting deadlines have passed.
By March 21, FinCEN plans to issue an interim final rule extending BOI reporting deadlines to provide businesses with additional guidance and clarity. The agency also intends to seek public feedback on potential revisions to existing BOI reporting requirements, with a proposed rulemaking expected later this year.
FinCEN emphasized its commitment to reducing regulatory burdens while ensuring that BOI reporting remains useful for national security, intelligence, and law enforcement efforts.
FinCEN (the Financial Crimes Enforcement Network) is a bureau of the U.S. Department of the Treasury that focuses on combatting money laundering, terrorist financing, and other financial crimes. It collects and analyzes financial transaction data to detect illicit activities and enforces compliance with financial regulations, such as the Bank Secrecy Act (BSA).
Key functions of FinCEN:
- Enforcing anti-money laundering (AML) laws and regulations.
- Requiring financial institutions to report suspicious activities via Suspicious Activity Reports (SARs).
- Collaborating with law enforcement agencies and financial institutions.
- Implementing regulations for cryptocurrency transactions and other emerging financial risks.
