Trump Praises Treasury's Move To Suspend 'Outrageous' BOI Rule Aimed At Curbing Illegal Activities: 'Biden Rule Has Been An Absolute Disaster For Small Businesses'

President Donald Trump has expressed his approval of the Treasury Department’s decision to suspend the Beneficial Ownership Information (BOI) reporting requirement, a move he believes will benefit small businesses across the nation.

What Happened: In a post on Truth Social on Sunday, Trump lauded the Treasury Department’s decision on March 2 to suspend enforcement of the BOI reporting requirement, a Biden-era rule he described as “outrageous” and “invasive”. He also commended the department’s initiative to complete an Emergency Regulation that would officially halt this rule for U.S. businesses.

The president also stated that the Treasury Department will not impose any penalties or fines related to the BOI reporting rule under the current regulatory deadlines. Additionally, no penalties or fines will be enforced against U.S. citizens, domestic reporting companies, or their beneficial owners once the upcoming rule changes are implemented.

U.S. Secretary of the Treasury Scott Bessent stated, "Today's action is part of President Trump's bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy."

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Why It Matters: The Corporate Transparency Act, enacted in January 2021, is an anti-money laundering law requiring businesses to disclose their ownership structures to the Financial Crimes Enforcement Network (FinCEN).

The idea behind this was to promote transparent ownership structures, helping prevent fraudulent players from using shell companies for illegal activities such as money laundering or drug trafficking.

The Treasury Department’s decision to suspend enforcement of the BOI reporting is seen as a significant relief for small businesses nationwide, which have been grappling with the complexities and costs associated with compliance. The suspension is also expected to ease the burden on U.S. citizens and domestic reporting companies, who will no longer face penalties or fines associated with the BOI reporting rule after the forthcoming rule changes take effect.

At the end of the post, Trump announced that the Treasury Department would propose a new rule limiting its scope to foreign reporting companies. He believes this change will benefit hardworking American taxpayers and small businesses.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.