India, March 3 -- The Treasury Department has announced that it will no longer enforce the Corporate Transparency Act or the associated Beneficial Ownership Information reporting requirements. The agency asserted that "not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either."

The Treasury Department said it will soon issue a proposed rule to narrow the scope of the rule to foreign reporting companies only. "This is a victory for common sense," said...