The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued a final rule on Aug. 11 permanently removing beneficial ownership information (BOI) reporting requirements for U.S. companies and U.S. persons under the Corporate Transparency Act (CTA). The rule finalizes the narrower framework adopted in March 2025 and provides long-term relief for millions of U.S. businesses.

State of Play

• All entities created in the United States are exempt from BOI reporting, including the limited liability companies and partnerships commonly used to own and operate commercial real estate. The rule took effect Aug. 14, 2026. (Final Rule | Treasury Press Release, Aug. 11)

• FinCEN will delete information previously reported by U.S. persons who are now exempt from the requirements. (FinCEN, Aug. 11)

• Foreign entities that qualify as reporting companies remain subject to the CTA, but they are required to report BOI only for foreign individuals. (FinCEN, Aug. 11)

Why It Matters for CRE

• Treasury originally estimated the CTA would reach roughly 32 million existing entities, plus millions of newly formed entities each year. Under the narrowed framework, only about 11,600 foreign firms are expected to report annually. (Roundtable Weekly, March 28, 2025)

• The regime posed particular challenges for real estate, where individual assets are frequently held in separate LLCs or partnerships. The final rule eliminates the need to identify individuals with indirect ownership interests or substantial control across these structures and file updates following changes in ownership or management. (Roundtable Weekly, June 7, 2024)

RER Advocacy

• For years, RER and its coalition partners repeatedly raised concerns about the CTA’s regulatory burden and supported the court challenges to the law. (RER Beneficial Ownership Fact Sheet | Coalition Statement, Dec. 7, 2022)

• RER has submitted numerous comments and joined coalition letters to FinCEN on the proposed regulations, urging delays in implementation and supporting legislation to repeal the CTA. (Letter, Feb. 4, 2022 | Joint CRE Letter, Feb. 21, 2022 | Letter, Oct. 2023 | Coalition Letter, March 19, 2024 | Roundtable Weekly, May 10, 2024 | Coalition Letter, June 4, 2024)

• Most recently, RER and a coalition urged Treasury to delay the CTA’s reporting requirements weeks before the department announced it would suspend enforcement against domestic companies. (Coalition Letter, Jan. 4, 2025)

RER’s Real Estate Capital Policy Advisory Committee (RECPAC) will continue to track developments related to beneficial ownership reporting requirements.