repeals

U.S. Secretary of the Treasury Scott Bessent (R) is shown with Secretary of State Marco Rubio during a meeting in July in the Oval Office of the White House in Washington, D.C. The Treasury Department has repealed a business reported rule that was connected to the Corporate Transparency Act. Photo by Graeme Sloan/UPI | License Photo

Aug. 12 (UPI) — The U.S. Treasury Department has officially repealed a rule that required U.S. companies and individuals to report “beneficial ownership information” to the department.

The Financial Crimes Enforcement Network bureau of the Treasury Department — which is meant to safeguard the U.S. financial system from illegal activity, work against money laundering and terrorism financing and help with national security — issued a final rule Tuesday that permanently removes the requirement. The reporting rule existed in connection with the Corporate Transparency Act.

The network, called FinCEN, also announced that it would delete all previously reported information from its databases.

Treasury Secretary Scott Bessent called it “a victory for common sense” and said that it eliminates a “burdensome reporting requirement.” An interim final rule has been in place since March 2025.

This final rule also exempts U.S. citizens with FinCEN identification from having to update or correct their information and eliminates a requirement for foreign businesses to report U.S. citizens who helped them register to do business in the United States.

As defined by FinCEN, a beneficial owner is one who directly or indirectly owns at least 25% of a company or exercises substantial interest over the company.

Sen. Elizabeth Warren, D-Mass., issued a statement Tuesday saying the repeal guts the Corporate Transparency Act and is a “gift to cartels, criminals and U.S. adversaries that exploit shell companies to move millions through our financial system.”

“The Trump administration has dismissed law enforcement warnings, ignored the role that shell companies play in crimes ranging from drug trafficking to fraud to sanctions evasion and gutted a statue that Secretary Rubio once championed as ‘the most significant anti-corruption and money-laundering law in decades,” Warren said.

Secretary of State Marco Rubio posted that statement about the act on social media in December 2020.

Congress passed the Corporate Transparency Act in 2021. The reporting requirement went into effect in 2024.