FinCEN Permanently Exempts US Companies From Beneficial Ownership Reporting
A FinCEN final rule effective August 14, 2026 permanently removes Corporate Transparency Act beneficial-ownership reporting for US companies and US persons, and deletes previously filed US-person data.
What Changed
A final rule from the Financial Crimes Enforcement Network (FinCEN), effective August 14, 2026, permanently narrows beneficial-ownership information (BOI) reporting under the Corporate Transparency Act (CTA). It makes permanent the March 2025 interim rule that redefined a reporting company to mean only entities formed under foreign law and registered to do business in a US state or tribal jurisdiction. US-formed entities and their beneficial owners are exempt, and foreign reporting companies need not disclose US-person beneficial owners or US-person company applicants. FinCEN also said it will delete BOI previously reported by US persons from its database, shrinking the reporting population from roughly 32 million entities to roughly 28,000 foreign ones.
Who It Affects
US-formed LLCs, corporations, and similar entities that had filed or prepared to file BOI, and the roughly 28,000 foreign entities registered to do business in the US that remain in scope. Financial institutions relying on the BOI registry as a due-diligence input lose most of its coverage. This is a rare federal retraction of a KYC-adjacent regime, so institutions can no longer treat the registry as a backstop and must own beneficial-ownership collection themselves.
What to Do
Update onboarding playbooks: for US customers, the FinCEN registry is no longer a source, so your own beneficial-ownership and control-person collection under the customer due diligence rule carries the full weight. Keep BOI processes running for the foreign reporting companies still covered. Reconcile any internal workflow that queried the registry. Independent identity and ownership verification, captured with an audit trail, replaces the coverage the registry no longer provides.
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