Treasury Department Finalizes Rule Exempting US Businesses from Corporate Transparency Act

The Treasury Department has finalized a rule that removes domestic companies and US individuals from the beneficial ownership information reporting requirements mandated by the Corporate Transparency Act. This rule, finalized by FinCEN on August 11, 2026, takes effect on August 14, 2026.

As part of this change, FinCEN intends to remove all previously submitted beneficial ownership data concerning US persons from its databases. The Corporate Transparency Act, enacted in 2021, originally required approximately 32 million small businesses to disclose ownership information to assist in preventing money laundering, sanctions evasion, and the financing of terrorism.

The final rule redefines the term reporting company to exclude entities formed under US state or tribal law. Treasury Secretary Scott Bessent stated that the decision serves as a significant alleviation of burdens for millions of law-abiding business owners while maintaining a balance between regulatory relief and national security.

Foreign entities created under foreign law that register to conduct business in the US remain subject to the disclosure requirements. These companies must continue to report beneficial ownership details to FinCEN, with some deadlines dating back to April 25, 2025.