ALERT: Financial Crimes Enforcement Network Updates Beneficial Ownership Information Filing Deadline

As Dilworth advised in previous updates, on January 23, 2025, the United States Supreme Court reversed the Fifth Circuit injunction in Texas Top Cop Shop, Inc., et al. v. Garland, et al. and reinstated the enforcement of the Corporate Transparency Act (CTA) nationwide, while the merits of the case were under expedited appellate review. In response, FinCen released a statement on January 24, 2025, indicating that because a separate nationwide injunction issued by a different Texas court in Samantha Smith and Robert Means v. U.S. Department of the Treasury, No. 6:24-CV-336 (E.D. Texas 1/7/2025) remained in place, reporting companies were not required to report their beneficial ownership information (BOI) and enforcement of the CTA continued to be paused.

However, on February 17, 2025, the federal district court in the Smith case lifted this last remaining nationwide injunction.  In response, FinCen reinstated the BOI reporting requirements, setting the new filing deadline as MARCH 21, 2025.  In its statement, FinCen said, “FinCEN intends to extend the reporting deadline for all reporting companies 30 days from the date the stay is granted. Further, in keeping with Treasury’s commitment to reducing regulatory burden on businesses, FinCEN, during that 30-day period, will assess its options to modify further deadlines or reporting requirements for lower-risk entities, including many U.S. small businesses, while prioritizing reporting for those entities that pose the most significant national security risks.”  If you have not already reported your Beneficial Ownership Information to FinCen, please make a plan to do so prior to the MARCH 21, 2025 deadline.  The corporate and business attorneys at Dilworth Paxson are ready to assist our clients ensure compliance with this new deadline.