BOI reporting is reinstated

Beneficial Ownership Information (BOI) reporting obligations are reinstated for covered U.S. entities. FinCEN (Financial Crimes Enforcement Network) has reinstated BOI reporting obligation upon a court order issued on 17th of February by the U.S. District Court for the Eastern District of Texas.

Recognizing the need for a transition period, FinCEN has extended the filing deadline to March 21, 2025, and is evaluating potential modifications to alleviate compliance burdens for lower-risk entities, particularly small businesses.

However, the legal uncertainty remains – the Fifth Circuit Court of Appeals is still reviewing key cases challenging the constitutionality of the CTA and the scope of its application. These rulings could have far-reaching implications for the Act’s future enforceability and regulatory framework.

Given the current legal landscape, companies should carefully assess their reporting obligations and take steps to comply before the existing deadline. We continue to monitor developments and will provide updates as new information emerges.

For strategic legal guidance on CTA compliance and regulatory risk, our team is ready to assist.