In response to the U.S. District Court for the Eastern District of Texas ruling on February 18, 2025, in the case of Smith, et al. v. U.S. Department of the Treasury, et al. (Case No. 6:24-cv-00336), the Financial Crimes Enforcement Network (FinCEN) has confirmed that the beneficial ownership information (BOI) reporting obligations under the Corporate Transparency Act are once again enforceable. Companies now have until March 21, 2025, to comply with these requirements. FinCEN is considering modifying the reporting deadlines and focusing first on entities that present the highest national security risks. Additionally, the agency plans to launch a review process later this year to revise the BOI reporting rule, aiming to ease compliance burdens for lower-risk entities, particularly small businesses across the United States.
We will continue to monitor the situation and update you as more information becomes available.
Please note that this alert is for informational purposes only and does not constitute legal advice.