Treasury Ends Ownership Reporting Enforcement for Some US Firms

The US Treasury Department said Sunday it won’t enforce penalties or fines against US citizens or domestic reporting companies or their beneficial owners under the Corporate Transparency Act.

The agency said in a statement that it also would embark on a rulemaking that narrowed the scope of the beneficial ownership information reporting rule under the law to “foreign reporting companies only.”

The department’s Financial Crimes Enforcement Network had said Feb. 27 it wouldn’t issue fines to companies that miss a March 21 initial deadline to comply with the law. FinCEN had said it would wait to begin penalties and enforcement ...