Mar 04 2025 2 mins
In the last few days, the U.S. Secretary of the Treasury has been at the center of significant developments, particularly regarding the enforcement of the Corporate Transparency Act (CTA).
On March 2, 2025, the Treasury Department issued a press release announcing a significant shift in its approach to enforcing the CTA. The Secretary of the Treasury, in this context, has decided that the department will not enforce penalties or fines against companies for failing to file or update beneficial ownership information (BOI) reports until a forthcoming interim final rule becomes effective. This decision follows a federal district court in Texas staying a nationwide preliminary injunction related to the CTA[4].
The Treasury Department's move is part of a broader effort to adjust the regulatory landscape. FinCEN, the Financial Crimes Enforcement Network, had previously announced that it would not issue fines or penalties for any failures to file or update BOI reports until the new interim final rule is in place, with a deadline of March 21, 2025, for most reporting companies. The Treasury Department has now extended this leniency, stating that it will not enforce penalties or fines against U.S. citizens, domestic reporting companies, or their beneficial owners even after the rule changes take effect[4].
This decision is framed as a measure to support hard-working American taxpayers and small businesses, aligning with the administration's goal of reducing burdensome regulations. U.S. Secretary of the Treasury Scott Bessent described this action as "a victory for common sense" and part of the administration's agenda to "unleash American prosperity" by easing regulatory burdens, especially on small businesses[4].
However, this suspension of enforcement has left several questions unanswered, including the fate of beneficial ownership information previously submitted to FinCEN and the impact on pending federal court cases. Despite these uncertainties, reporting companies are advised to remain prepared to file their BOI reports while monitoring the evolving situation[4].
In addition to these regulatory changes, the Treasury Department's activities are also highlighted in other contexts, such as upcoming nominations and hearings. For instance, the U.S. Senate Finance Committee, chaired by Senator Mike Crapo, is set to hold a nomination hearing on March 6, 2025, to consider Michael Faulkender for the position of Deputy Secretary of the Treasury. This hearing will include witness testimony and will be available for public viewing[2].
These recent actions and announcements underscore the active role the Secretary of the Treasury is playing in shaping financial regulations and policies, reflecting a continued focus on supporting American businesses and taxpayers.
On March 2, 2025, the Treasury Department issued a press release announcing a significant shift in its approach to enforcing the CTA. The Secretary of the Treasury, in this context, has decided that the department will not enforce penalties or fines against companies for failing to file or update beneficial ownership information (BOI) reports until a forthcoming interim final rule becomes effective. This decision follows a federal district court in Texas staying a nationwide preliminary injunction related to the CTA[4].
The Treasury Department's move is part of a broader effort to adjust the regulatory landscape. FinCEN, the Financial Crimes Enforcement Network, had previously announced that it would not issue fines or penalties for any failures to file or update BOI reports until the new interim final rule is in place, with a deadline of March 21, 2025, for most reporting companies. The Treasury Department has now extended this leniency, stating that it will not enforce penalties or fines against U.S. citizens, domestic reporting companies, or their beneficial owners even after the rule changes take effect[4].
This decision is framed as a measure to support hard-working American taxpayers and small businesses, aligning with the administration's goal of reducing burdensome regulations. U.S. Secretary of the Treasury Scott Bessent described this action as "a victory for common sense" and part of the administration's agenda to "unleash American prosperity" by easing regulatory burdens, especially on small businesses[4].
However, this suspension of enforcement has left several questions unanswered, including the fate of beneficial ownership information previously submitted to FinCEN and the impact on pending federal court cases. Despite these uncertainties, reporting companies are advised to remain prepared to file their BOI reports while monitoring the evolving situation[4].
In addition to these regulatory changes, the Treasury Department's activities are also highlighted in other contexts, such as upcoming nominations and hearings. For instance, the U.S. Senate Finance Committee, chaired by Senator Mike Crapo, is set to hold a nomination hearing on March 6, 2025, to consider Michael Faulkender for the position of Deputy Secretary of the Treasury. This hearing will include witness testimony and will be available for public viewing[2].
These recent actions and announcements underscore the active role the Secretary of the Treasury is playing in shaping financial regulations and policies, reflecting a continued focus on supporting American businesses and taxpayers.