Will You Need to Report BOI? Here’s Where We Are
The Corporate Transparency Act (CTA), enacted as an anti-money laundering measure, requires that US entities that existed before 2024 disclose the identities of their beneficial owners – individuals who own or control the business – by January 1st, 2025. This is being called Beneficial Ownership Information (BOI) reporting.
But as of December 26th, 2024, a Fifth Circuit panel has reinstated a nationwide injunction blocking enforcement of the CTA. This comes just days after a different panel lifted the injunction, which is causing turmoil in compliance offices.
Here is the simplified rundown of how we got here:
- The district court in Texas issued an order enjoining (stopping) the enforcement of the CTA and BOI reporting.
- Then, the Financial Crimes Enforcement Network (FinCen) appealed to the federal court of appeals and was granted the stay to keep the BOI reporting requirement in effect.
- Now, the stay keeping the BOI reporting in place has been lifted, so the nationwide injunction blocking enforcement of the reporting requirement is once again in effect.
As of time of publication, this injunction is still in effect, but keep in mind that this is still developing. There will surely be more updates, and we will do our best to keep you up-to-speed. Please contact us with any questions you may have.