The U.S. Treasury Department has repealed a rule that previously required U.S. businesses to disclose ownership information to federal financial-crimes agencies. Treasury Secretary Scott Bessent announced that the rule was abolished to reduce the burden on American businesses.
The decision has drawn mixed reactions. Republican officials expressed gratitude to Treasury, praising the move as supportive of job creators. Conversely, Democratic leaders voiced concern, arguing that the repeal might facilitate the use of shell companies by criminals to evade detection.
Although U.S. businesses are no longer mandated to report ownership details, foreign companies and pooled investment vehicles remain obligated to disclose information about their foreign owners. However, they are no longer required to identify Americans who assist in registering their business operations in the U.S.
An advisory from the Treasury highlighted that any previously collected data regarding U.S. business owners will be deleted, removing the information from federal records.