FinCEN Ends Beneficial Ownership Reporting for US Companies: What KYC Teams Must Do

For several years, a US company's beneficial owners had to be reported to the Treasury under the Corporate Transparency Act. In August 2026 that requirement was effectively switched off for American companies. The change matters well beyond the United States: it affects how banks, accountants and other firms verify who owns the US entities they deal with, and it is a reminder that a government register is not a substitute for your own customer due diligence. This guide explains what FinCEN's final rule does, who still has to report, what remains in force for financial institutions and how to adapt your KYC. It draws on law firm summaries of the rule, so check FinCEN's own publication for the legal text.

What the final rule does

According to Morrison Foerster, FinCEN, the US Treasury's Financial Crimes Enforcement Network, announced the final rule on 11 August 2026, and it took effect on 14 August 2026. Steptoe's summary of the rule is dated 19 August 2026 and describes it as effective immediately on publication in the Federal Register. The rule makes permanent the principal exemptions from an interim final rule that took effect on 25 March 2025. In summary:

• Domestic reporting companies are permanently exempt from reporting beneficial ownership information under the Corporate Transparency Act.
• Reporting companies do not have to report beneficial ownership information for US-person beneficial owners and company applicants.
• US persons do not have to provide their information, or update or correct information already submitted to obtain a FinCEN identifier.
• Steptoe adds that a US person who controls a foreign pooled investment vehicle registered in the US no longer has to be reported.
• FinCEN will delete, as practicable, information previously submitted that would not now be required. Companies and individuals do not need to request deletion, and FinCEN plans to issue a public notice when the process is complete.

Who still has to report

Only foreign reporting companies, which are entities formed under the law of another country and registered to do business in a US state or tribal jurisdiction, remain in the regime, unless another exemption applies. They report their non-US beneficial owners and company applicants, but not US persons. Morrison Foerster notes that a foreign company with only US-person owners must still file a company report without owner information, and must provide a US address.

What did not change: the bank customer due diligence rule

This is the point most likely to be missed. Morrison Foerster reports that the final rule does not remove the separate requirement on covered financial institutions to collect beneficial ownership information from their legal-entity customers under FinCEN's Customer Due Diligence Rule. It also reports a 13 February 2026 exceptive relief order that lets institutions limit identifying and verifying the beneficial owners of a legal-entity customer to three situations: when the customer opens an account, when the institution learns facts that call previously obtained information into question, and when collection or verification is warranted under its risk-based ongoing due diligence procedures. According to the same summary, FinCEN has said it still needs to modify the Customer Due Diligence Rule and plans to update it now that the Corporate Transparency Act changes are complete. Because that rule is expected to change, watch for further announcements.

The practical consequence is that banks and other covered institutions cannot treat the end of corporate reporting as the end of beneficial ownership checks. Their obligation to identify who owns and controls a legal-entity customer sits in a separate rule.

What it means for KYC teams and accountants

• No central US register to lean on. There is not a government database of US company owners for you to consult, so ownership evidence has to come from the customer and from your own verification. This is the opposite direction to the UK, where persons with significant control and trust registers exist, as our guide to ultimate beneficial ownership explains.
• Use a risk-based approach. Decide when a US entity's structure is complex enough to need documents beyond what the customer volunteers: operating agreements, share registers, or evidence of control.
• Foreign companies are different. A foreign entity registered to do business in the US may still appear in the reporting regime for its non-US owners, but do not assume the information is available to you.
• Keep your own records. If you rely on a customer's statement of its owners, record what you asked and what evidence you obtained.
• Watch the litigation and the rule changes. Morrison Foerster notes that the Eleventh Circuit upheld the Corporate Transparency Act against facial challenges in December 2025 and that a Supreme Court petition is pending.

If you are a UK or Irish practitioner with US-linked clients, our guide to US AML requirements for CPAs covers the broader American framework, and our customer due diligence guide for accountancy practices sets out the baseline steps that apply wherever the customer is based.

Frequently asked questions

Does the final rule end beneficial ownership checks in US banks?

No. According to Morrison Foerster, the separate Customer Due Diligence Rule for covered financial institutions remains, though FinCEN has said it plans to update it.

Which companies must still report to FinCEN?

Foreign reporting companies registered to do business in the US, for their non-US beneficial owners, unless another exemption applies.

Is there still a US beneficial ownership register for domestic companies?

Domestic companies no longer report, and FinCEN will delete information previously submitted that is no longer required.

Where can I learn more about KYC?

See Learnsignal's CPD courses for finance professionals.