The Treasury Department, under President Donald Trump, announced on March 2, 2025, that it will no longer enforce the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) Reporting requirements.
Trump termed the regulation as “outrageous and invasive” and did not hesitate to blame Joe Biden for implementing a policy that he believes has been a nightmare for small businesses.
What Is BOI Reporting?
BOI reporting came to place to combat money laundering and it required companies to disclose the identities of their true owners to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The regulation aimed to crack down on shell companies used for any kind of illegal financial activities.
The rule came with fines ($500 per day up to $10,000 per violation) and even possible jail time (up to two years) for anyone who fails to timely satisfy the CTA’s requirements. Many had denied it and stated reasons like they won’t pay the fine, and that it can’t be constitutional.
Donald Trump’s Announcement
Taking to Truth Social, Donald Trump celebrated the decision. He stated, “Exciting news! The Treasury Department has announced that it is suspending all enforcement of the outrageous and invasive Beneficial Ownership Information (BOI) reporting requirement for U.S. citizens. This Biden rule has been an absolute disaster for Small Businesses Nationwide. Furthermore, the Treasury is now finalizing an Emergency Regulation to formally suspend this rule for American businesses. The economic menace of BOI reporting will soon be no more.”
WASHINGTON: President Trump’s response to Treasury Dept. announcement that it won’t enforce Corporate Transparency Act reporting penalties under current deadlines or after upcoming rule changes. A proposed rule will limit the rule to foreign reporting companies only. pic.twitter.com/yCZFjMlGC2
— KolHaolam (@KolHaolam) March 3, 2025
Scott Bessent, U.S. The Secretary of the Treasury, also supported the decision as evident in his statement. He said, “This is a victory for common sense. Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, particularly for small businesses that are the backbone of the American economy.”
Background on the Corporate Transparency Act
The Corporate Transparency Act was originally passed in 2019 with bipartisan support, and Donald Trump himself had backed the law during his first term. However, the BOI reporting requirement which was set to take effect on January 1, 2024, had to be through multiple delays due to legal challenges and federal court rulings.
The Treasury’s latest move means that businesses will no longer face fines or penalties for failing to submit their ownership details.
View this post on Instagram
With this reversal and dismantling Biden-era policies, Donald Trump stays consistent to scale back regulations as he positions himself as a champion of small businesses.
