FinCEN Issues Final Rule Exempting Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons
On August 11, 2026, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule exempting U.S. companies and U.S. persons from reporting beneficial ownership information (“BOI”) under the Corporate Transparency Act (“CTA”). The final rule goes into effect today on its publication in the Federal Register.
The final rule adopts, with certain limited modifications, the exemptions set out in the interim final rule issued on March 26, 2025. In addition, it exempts all U.S. persons who have obtained FinCEN IDs from any obligation to update or correct the information they originally provided to FinCEN to obtain their FinCEN IDs. FinCEN also announced that it will delete previously reported information about any individual or entity, whether a company applicant, beneficial owner or recipient of a FinCEN ID, that FinCEN reasonably believes is a U.S. person (e.g., if their information is linked to a U.S. passport or U.S. driver’s license).
Under the final rule, foreign companies that do not qualify for an exemption from the
reporting requirements still must report BOI for foreign beneficial owners to FinCEN. The final rule eliminates the requirement for foreign companies to report U.S. person “company applicants” (i.e., the individuals who helped those foreign companies register to do business in the U.S.) and exempts foreign pooled investment vehicles registered in the United States from reporting the BOI of a U.S. person in control of the investment vehicle.
In light of the adoption of this final rule, InterActive Legal will remove all CTA related provisions contained in its documents in an upcoming update. In the meantime, users will need to delete those references manually after assembly. The documents that contain CTA related provisions include most trusts, wills that include testamentary trusts, and business documents (limited liability company and limited partnership agreements). In the upcoming update, InterActive Legal will also disable options relating to adding CTA related provisions to other document such as client consultation letters and retainer agreements.
Mohineet Khosla received her J.D. from New York University School of Law in 2001. Following law school, Mohineet practiced for over a decade at Milbank LLP in NYC.
Her practice included providing sophisticated estate planning advice to high net worth families, both domestic and international. Mohineet has also represented clients in audits before the Internal Revenue Service and fiduciaries on complex estate and trust administration matters.
