The US Treasury Department has announced that it will not enforce an anti-money laundering law requiring millions of business entities to disclose their real beneficial owners. The Corporate Transparency Act, introduced during the Biden era, was opposed by the Trump administration due to concerns about its burden on low-risk entities.
However, in a statement, the Treasury Department said it would exempt US citizens and domestic reporting companies from penalties under the act. Instead, it plans to issue a rule narrowing the scope of the law to apply only to foreign reporting companies. The move aims to support small businesses while addressing the growing issue of illicit funds laundering through the US.
The Corporate Transparency Act was designed to combat this problem, with supporters arguing that the US’s popularity as a money laundering venue is increasing due to its lack of transparency requirements.
Source: https://finance.yahoo.com/news/us-treasury-department-says-not-015049621.html