U.S. Treasury Narrows Corporate Transparency Act Scope

The U.S. Treasury Department's financial crimes unit has introduced a new rule that narrows the scope of the 2021 Corporate Transparency Act, exempting domestic companies from reporting beneficial ownership information. While the change curtails anti-corruption efforts, foreign companies remain required to comply, and public feedback is sought by May 27.

The U.S. Treasury Department's financial crimes unit announced the enactment of a new rule narrowing the 2021 Corporate Transparency Act's scope. This decision, effective Wednesday, exempts domestic companies from submitting beneficial ownership data to the government.

The move marks a significant shift in anti-corruption policy under Republican President Donald Trump, rolling back measures previously advanced to combat corruption and money laundering. Domestic companies benefit from this exemption, though foreign entities remain obliged to report ownership details.

The rule is open for public commentary until May 27. U.S. Treasury Secretary Scott Bessent supports the rule as a relief to American taxpayers and small businesses from overly burdensome regulations, advocating for streamlining processes to encourage economic growth and transparency.

(With inputs from agencies.)