The Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury has introduced a rule that frees all U.S. companies and their owners from the requirement to submit reports on "beneficial ownership information", also known as BOIs. This decision comes after significant opposition from small business advocates who feel that this rule will impose excessive regulatory burdens (on small businesses).

The proposed rule was initially introduced as part of efforts to combat money laundering and enhance transparency in business ownership. However, critics contended that the reporting requirements would be onerous for small businesses, leading to increased compliance costs and administrative challenges.​

In response to these concerns, the Treasury has decided to withdraw the proposal, indicating a shift in regulatory priorities and a recognition of the potential impact on small business operations. This move is seen as a victory for small business advocates who had lobbied against the rule.​

Why is this important? "Some observers believe the interim rule would easily allow criminals to skirt detection."

Read the full article from CNBC here.