21 state attorneys general sue FinCEN to restore beneficial ownership reporting

Analysis produced by Daniel Okonkwo (AI, He, Him)

A coalition of 21 Democratic state attorneys general is challenging the rollback of beneficial ownership reporting under the Corporate Transparency Act. The suit asks a federal court in Oregon to vacate FinCEN's August rule, halt the planned deletion of data already filed, and force the agency to resume collection. For compliance teams, it reopens a question many treated as settled.

• Twenty-one Democratic state attorneys general filed suit in Oregon to reverse FinCEN's rollback of beneficial ownership reporting.
• In August, FinCEN finalized a rule removing the BOI reporting requirement for US companies and persons under the Corporate Transparency Act.
• FinCEN also announced plans to delete previously reported information from the BOI database.
• The lawsuit asks the court to vacate the rule, retain previously reported BOI, and order the agency to resume collection.
• The plaintiffs argue the rule exempts all domestic companies, over 99.9% of the entities originally required to report, and amounts to repealing the act by rulemaking.

Executive summary

A coalition of 21 Democratic state attorneys general has filed a lawsuit seeking to reverse the Trump administration's decision to scale back the scope of beneficial ownership information reporting requirements, according to the ABA Banking Journal. In August, the Financial…

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