On September 9, 2025, Andrea Gacki, Director of the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), confirmed to lawmakers on the House Financial Services Committee that FinCEN will begin removing beneficial ownership information (BOI) from companies no longer required to report under the Corporate Transparency Act (CTA).

Earlier this year, NLBMDA and its coalition partners secured a major rulemaking victory that substantially revised CTA reporting requirements. The change eliminated BOI filings for nearly 33 million small businesses, including LBM dealers.

On Monday, nearly 90 Members of Congress urged FinCEN to finalize a rule that permanently exempts U.S. small businesses from reporting requirements and ensures that previously submitted BOI data is destroyed. Their letter stated in part

“The CTA only applies to small businesses, those with fewer than 20 employees and under $5 million in revenue. These small businesses are the mom-and-pop shops in small towns and big cities across America that are the foundation of our communities. The CTA wrongly associates our family members, friends, and neighbors who own small businesses with criminal actors, terrorists and drug traffickers. This is wrong.”

During the hearing, Rep. Warren Davidson (R-OH), Chairman of the Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, asked Director Gacki whether FinCEN would remove data from businesses no longer subject to the CTA. Gacki confirmed the agency will delete all data “no longer legally required to be filed” and intends to complete the process later this year.

The legality of the CTA remains under review in federal courts, where several groups continue to challenge its constitutionality. Rep. Davidson also continues to champion H.R. 425, the Repealing Big Brother Overreach Act, which would permanently repeal the CTA and prevent future administrations from reinstating reporting requirements for the vast majority of small businesses.

NLBMDA will continue to closely monitor developments surrounding the CTA and FinCEN’s actions and will keep members informed on the latest.