The U.S. Supreme Court has lifted an injunction that previously blocked the enforcement of beneficial ownership information (BOI) reporting requirements, signaling a potential shift in compliance obligations for certain entities. However, the path forward is far from straightforward, as another nationwide injunction issued by a Texas federal judge remains in effect, preventing FinCEN from enforcing the BOI requirements.
Addressing the uncertainty, the Financial Crimes Enforcement Network (FinCEN) released a statement clarifying the situation:
In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
This dual-injunction scenario has created a confusing landscape for affected businesses, which are now left waiting for additional legal clarity. While the Supreme Court's decision is a step forward, the Texas ruling keeps enforcement on hold, leaving the compliance timeline unclear.
We recommend that anyone subject to the BOI reporting requirements continue gathering the necessary information and remain prepared to file the BOI report.
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