Treasury Repeals Ownership Reporting Rule

The U.S. Treasury Department announced the permanent repeal of a rule that required domestic businesses to disclose their ownership to federal financial-crimes investigators. Treasury Secretary Scott Bessent explained that the rule was originally intended to address money laundering and other financial crimes. However, it placed an excessive burden on American businesses.

The decision was made public on Tuesday. Republicans expressed gratitude to the Treasury for supporting job creators. In contrast, Democrats voiced concerns. They argued that the repeal could facilitate criminals using shell companies to evade detection.

Although U.S. companies are now exempt from reporting ownership, foreign companies and pooled investment vehicles like mutual funds or hedge funds will still have to report foreign ownership. They will not need to identify Americans who assist them with U.S. business registration. Additionally, the Treasury announced that it will erase any previously gathered information on U.S. business owners.