The Financial Crimes Enforcement Network announced that, in light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information, or BOI.
Background:
The U.S. District Court for the Eastern District of Texas on Dec. 3 granted a request for a preliminary injunction to block the Treasury Department from enforcing the Corporate Transparency Act’s BOI reporting requirements.
On Dec. 23, the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction and FinCEN extended reporting deadlines.
On Dec. 26, however, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Dec. 23 order granting a stay of the preliminary injunction.
Result: As of Dec. 26, the injunction issued by the district court is in effect, so reporting companies are not currently required to file BOI with FinCEN, though the agency said reporting companies could continue to voluntarily submit BOI reports.
ICBA View: ICBA has repeatedly called for FinCEN to withdraw the requirement that banks collect BOI.
