On March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) made a surprise move: it dropped Beneficial Ownership Information (BOI) reporting requirements for all U.S.-based companies. The shift leaves many organizations that spent the past year preparing to comply with the Corporate Transparency Act wondering whether all their efforts were for nothing.
The Act, passed in 2021, was intended to increase transparency around who truly owns and controls companies operating in the U.S. Its goal was to help prevent money laundering, terrorism financing, and the misuse of anonymous shell companies. For regulated businesses, it also laid the foundation for more consistent data in Know Your Business (KYB) onboarding and Anti-Money Laundering (AML) compliance workflows.
The recent BOI exemption doesn’t mean organizations should stop verifying who’s behind the businesses they work with. Even without a federal requirement, understanding ownership structures remains a core part of managing risk and making informed decisions.
Here’s a look at what you need to know—and why it still matters.
Knowing who owns or controls a business is a critical part of reducing financial crime. BOI helps identify shell companies, anonymous structures, and other entities that may be used to hide fraud, launder money, or evade sanctions.
Incorporating BOI into AML compliance procedures gives organizations a clearer picture of who they’re working with—and whether there’s a hidden risk. So, while some filings are no longer required, BOI remains a key factor in how companies onboard, assess risk, and manage business relationships.
The March 2025 interim final rule introduced specific changes to BOI reporting requirements. Here’s what’s changed:
New deadlines also apply to foreign companies under the new FinCEN BOI rule:
The rule is currently in effect, though FinCEN is still accepting comments. While U.S.-based businesses are no longer required to file, foreign entities should confirm whether they're still required to report—and when.
Removing federal BOI reporting requirements for U.S. entities may simplify operations for some. But for fintechs, banks, credit providers, insurers, and other regulated organizations, it could create more gaps. Businesses that previously relied on federal filings as a data source may now need to collect that information on their own.
KYB requirements are still in force. This means more organizations will need to invest in business verification, including tools that analyze and verify ownership relationships, flag shell entities, and maintain accurate customer records.
While the U.S. has eliminated federal BOI reporting, it’s still enforced in many other regions. For example, in the United Kingdom, companies must disclose their beneficial owners through the People with Significant Control (PSC) register. Across the European Union, ownership transparency is mandated under the Anti-Money Laundering Directives, with most member states maintaining public or government-accessible registries.
Even within the U.S., several states are introducing their own rules. New York’s LLC Transparency Act, set to take effect in January 2026, will require certain entities to report beneficial ownership to the state. Similar legislation is under consideration in California, Maryland, and Massachusetts.
For companies operating internationally—or managing risk across multiple U.S. jurisdictions—BOI compliance remains a relevant and necessary part of regulatory strategy. Regardless of whether reporting requirements apply, global operations still require consistent, verifiable ownership data.
Understanding who owns and controls a company helps organizations reduce fraud, assess eligibility for products and services, and identify high-risk relationships early. It also creates a foundation for stronger onboarding, making it easier to segment customers, customize products, and speed up approvals.
Without reliable ownership data, risk teams may be forced to work with incomplete business entity profiles, increasing exposure to financial crime and slowing down decision-making. For companies operating across markets, maintaining consistent KYB and verification practices helps ensure scalable compliance, even as regional rules continue to evolve.
With shifting BOI rules and widening data gaps, companies need a faster, more reliable way to verify business relationships. Using Markaaz business verification, organizations gain access to real-time business insights, global company data, and tools to spot hidden risks early in the onboarding process.
Our advanced business onboarding platform brings together firmographic enrichment, financial insights, and entity relationship data, so teams can quickly assess risk, confirm business legitimacy, and make better decisions.
Markaaz also supports ongoing monitoring, helping businesses stay ahead of changes in entity structure, company status, or risk profile—without relying on manual checks. The result: fewer surprises after onboarding and stronger oversight across the entire business relationship lifecycle.
In addition to supporting compliance teams, verified, up-to-date company data helps organizations shorten review cycles, reduce friction for legitimate customers, and uncover growth opportunities that may otherwise go unnoticed.
The March 2025 FinCEN BOI rule may have eased federal reporting requirements for U.S. companies, but it hasn’t eliminated the need for verifiable business insights. Verifying this information accurately remains one of the most effective ways to reduce risk, improve onboarding efficiency, and make confident business decisions.
Markaaz helps companies move forward with that clarity. With capabilities like real-time business verification, shareholder mapping, and enriched company profiles, Markaaz equips compliance, risk, and onboarding teams with the tools they need to support long-term growth.
Contact our team to learn how Markaaz can help provide better data to grow your business.
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