A US District Judge in Texas has issued a nationwide injunction, blocking the enforcement of an anti-money laundering law that requires corporate entities to disclose beneficial owner information to the Treasury Department. The 2021 Corporate Transparency Act was deemed likely unconstitutional by Judge Amos Mazzant, who ruled that Congress had no authority to regulate commerce and foreign affairs. The decision is the second time a judge has blocked similar enforcement, citing concerns over states’ rights and dual system of government. The law aims to address money laundering but its constitutionality has been questioned by small businesses and non-profits in Texas.
Source: https://www.reuters.com/legal/government/texas-judge-blocks-anti-money-laundering-laws-enforcement-nationwide-2024-12-04