A nationwide preliminary injunction has been issued in a Texas court, preventing the Department of the Treasury from enforcing the Corporate Transparency Act (CTA), the US’s most consequential anti-money laundering law in two decades. The law requires certain legal entities to disclose basic identifying information on their true owners.
The CTA passed with bipartisan support and is seen as a significant improvement to the US’s anti-money laundering framework. It aims to close the door on financial criminals benefiting from illicit activities, such as drug trafficking and human exploitation. However, a lower court judge has found the law “likely unconstitutional,” citing concerns about Congressional power.
The FACT Coalition and other stakeholders have expressed opposition to the injunction, arguing that it would undermine US national security and economic stability. Multiple federal courts have previously denied similar motions for preliminary injunctions, and experts expect the government to move to stay this order soon.
The CTA has been supported by a broad coalition of groups, including law enforcement, business, and anti-corruption organizations. The law is seen as a necessary exercise of Congress’s power under the Commerce Clause, and its implementation deadline is rapidly approaching.
Source: https://thefactcoalition.org/texas-cta-injunction