FinCEN STAYS MANDATORY SUBMISSION OF BENEFICIAL OWNERSHIP INFORMATION

On December 3, 2024, the United States District Court for the Eastern District of Texas issued an order granting a nationwide preliminary injunction: (1) enjoining enforcement of the United States Treasury Department’s Corporate Transparency Act, including regulations implementing the act’s beneficial ownership information reporting requirements, and, specifically, (2) staying all deadlines, most notably the December 31, 2024 deadline, by which businesses must comply with the act’s reporting requirements. The Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024.  Subsequently, FinCen issued an ALERT on its website advising that reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability for failing to do so while the order remains in force.