January 7, 2025 – A federal district court in Texas (Smith, et al. v. U.S. Department of the Treasury, et al.) issued a temporary injunction preventing FinCEN from enforcing the BOI reporting rule.

February 5, 2025 – The U.S. Department of Justice appealed the decision and requested a stay, emphasizing the rule’s importance for financial transparency and national security.

February 18, 2025 – The court granted a temporary stay of its previous order, reinstating the BOI reporting requirements while the appeal is underway.

March 2, 2025 – The U.S. Department of the Treasury suspended the enforcement of Beneficial Ownership Information (BOI) reporting requirements for domestic companies and individuals. This decision meant that U.S. businesses were not subject to fines or penalties for non-compliance with BOI reporting obligations.

March 21, 2025 – FinCEN issued a rule that removes the requirement for U.S. companies to report beneficial ownership information.

Beneficial Ownership Information Reporting refers to the process of disclosing and documenting the individuals who ultimately own or control a legal entity, such as a company or trust. The concept is crucial for promoting transparency and preventing illicit financial activities, such as money laundering, tax evasion, corruption, human and drug trafficking, as well as fraudulent actions against employees, customers, and other businesses.

By providing this information through the beneficial ownership information report, companies aid authorities in maintaining the integrity of financial systems and preventing the misuse of corporate entities for illegal purposes.

A beneficial owner of a company is someone who exercises substantial control over the company, or owns or controls at least 25 percent of the company’s interests. This includes:

• Senior officers, such as presidents, CFOs, CEOs, COOs
• Important company decision makers
• Someone who has authority to appoint or remove officers or directors
• Someone who owns or controls at least 25 percent of the company’s ownership, equity, voting rights, or stock