FinCEN Won't Enforce Penalties Under Corporate Transparency Act
Originally Published by: HBS Dealer — February 28, 2025
SBCA appreciates your input; please email us if you have any comments or corrections to this article.
The Financial Crimes Enforcement Network announced that it will not enforce the penalties under the Corporate Transparency Act (CTA).
The FinCEN stated in a press release: "No fines or penalties will be issued, and no enforcement actions will be taken, until a forthcoming interim final rule becomes effective and the new relevant due dates in the interim final rule have passed."
FinCEN intends to solicit public comment on potential revisions to existing BOI reporting requirements.
The FinCEN described this latest twist in the CTA saga as in step with the Treasury Department's commitment to reduce regulatory burdens on business.
The National Lumber & Building Material Dealers Association described the Feb. 27 announcement as "a major win for small businesses and the LBM industry."
NLBMDA CEO Jonathan Paine added: “NLBMDA commends the decision taken this week by the Treasury Department to suspend issuing penalties pursuant to the CTA. Earlier this year, NLBMDA sent a letter to Treasury Secretary Scott Bessent urging the Administration to implement an administrative delay given the numerous legal challenges and lack of a legislative remedy that would delay the CTA.”
Business groups had objected to provisions of the CTA. Particularly objectionable was the potential for fines for non-compliance (up to $591 per day, and for willful violators up to $10,000).
This latest turn in the on-again, off-again saga of the Corporate Transparency Act's requirement to file beneficial ownership information with FinCEN follows a March 21 ruling by a Texas judge that had lifted an injunction that previously halted the enforcement of the rule.