Treasury Department Suspends Corporate Transparency Act Enforcement for U.S. Companies

Published: March 4, 2025

In a major regulatory shift, the U.S. Treasury Department has officially announced the suspension of enforcement of the Corporate Transparency Act (CTA) reporting requirements for U.S. citizens and domestic reporting companies. This decision marks a significant win for small businesses across the country, many of whom have expressed concerns over the complexity and costs associated with complying with the CTA’s beneficial ownership reporting rules.

What Is the Corporate Transparency Act?

The Corporate Transparency Act, passed in 2021, was designed to combat money laundering, terrorism financing, and other illicit activities by requiring businesses to disclose information about their beneficial owners — the individuals who ultimately own or control a company. These reports were to be filed with the Financial Crimes Enforcement Network (FinCEN) and non-compliance could have resulted in fines and penalties.

However, the law has faced considerable pushback from small businesses, advocacy groups, and legal experts who argued that the reporting process was overly burdensome and imposed unnecessary regulatory hurdles, particularly on small businesses and family-owned companies.

What Has Changed?

The Treasury Department’s new announcement delivers some major changes that will greatly benefit U.S.-based businesses:

• No Penalties or Fines for U.S. Companies and Citizens:
  Treasury has suspended all enforcement of CTA-related penalties or fines for U.S. citizens and domestic companies.

• Future Rules Will Exclude Domestic Companies:
  Treasury also announced plans to narrow the Corporate Transparency Act’s scope, so that only foreign-owned companies will be required to file beneficial ownership reports. Domestic companies will no longer be covered under the CTA after these changes take effect.

• Support for Small Businesses:
  This action is being framed as part of President Trump’s regulatory reform agenda, which focuses on cutting unnecessary red tape to help small businesses thrive.

What Does This Mean for Your Business?

If your business is formed in the U.S. and is owned by U.S. citizens or residents, you can breathe easier. You will no longer be required to submit beneficial ownership reports to FinCEN, and any reports previously filed will not result in penalties for non-compliance.

For foreign-owned companies, the beneficial ownership reporting requirements will still apply, and Treasury will release a proposed rule soon to formalize these changes.

Why This Matters

This is a huge win for small businesses across the country. For many local businesses, navigating the CTA’s reporting requirements would have required hiring lawyers or compliance experts, adding unnecessary expenses and stress. By exempting U.S.-owned companies from these rules, Treasury is removing a significant regulatory burden — allowing business owners to focus on growth, innovation, and serving their customers.

What Comes Next?

The Treasury Department has promised to release a proposed rule that will outline the specifics of this shift, followed by a public comment period. Businesses and stakeholders will have the opportunity to weigh in before the rule becomes final.

In the meantime, if you have questions about how this change might impact your business or if you’re a foreign-owned company that still needs to comply, we’re here to help.

Final Thoughts

At the National Cleaners Assocation, we’re committed to keeping you informed about regulatory changes that affect your operations. This suspension of the Corporate Transparency Act’s domestic enforcement is just one of the key updates we’re following, so be sure to check back for further developments.

If you have any questions or want guidance on compliance requirements for your business, feel free to contact us today