An appeals court reversed a move that would have forced businesses to disclose their owners, blocking enforcement of the anti-money-laundering law starting January 1. The Corporate Transparency Act, passed in 2020, required companies to share information about their “beneficial owners” with the Treasury Department by next year.
The law aimed to prevent criminals and terrorists from hiding assets in the US by making it easier for authorities to track ownership. However, opponents argued that the law infringed on individuals’ rights to anonymity and freedom of association. The Fifth Circuit panel paused an injunction earlier this week, but a new order means that the nationwide ban on enforcement remains in place.
The law’s supporters say it is necessary given the ease with which companies can be formed without disclosing ownership information. FinCEN estimates that 32.6 million companies would need to register under the law, affecting at least three times as many individuals. The case is now heading to one of four federal appeals courts, with some speculating that it may eventually reach the Supreme Court.
Source: https://www.nytimes.com/2024/12/27/us/court-corporate-transparency-act.html