Treasury Department finalizes rule exempting US businesses from Corporate Transparency Act reporting

The Treasury Department just took a wrecking ball to one of the most sweeping financial disclosure rules in recent US history. FinCEN, the government’s financial crimes watchdog, finalized a rule on August 11 that permanently exempts domestic companies and US individuals from the beneficial ownership information reporting requirements of the Corporate Transparency Act. The rule takes effect on August 14, 2026. And in a move that privacy advocates will appreciate, FinCEN plans to scrub all previously submitted beneficial ownership data on US persons from its databases entirely. What the CTA was supposed to do The Corporate Transparency Act was enacted in 2021 as part of the National Defense Authorization Act. Its original purpose was straightforward: force companies to disclose who actually owns and controls them, making it harder for criminals to hide behind anonymous shell companies to launder money, evade sanctions, or finance terrorism. When the law took effect in January 2024, it required roughly 32 million small businesses to file beneficial ownership information with FinCEN. How we got here FinCEN laid the groundwork with an interim final rule back in March 2025, which signal...