Small biz advocacy group wins court challenge against the Corporate Transparency Act
The National Small Business Association has won a court challenge against the Corporate Transparency Act, a law designed to combat money laundering
By MAE ANDERSON
Published - Mar 12, 2024, 01:48 PM ET
Last Updated - Mar 12, 2024, 01:48 PM EDT
NEW YORK (AP) — The National Small Business Association has successfully challenged a law designed to combat money laundering but that small businesses contend is too burdensome.
A federal court in Alabama on March 1 ruled that the Corporate Transparency Act is unconstitutional.
The law requires businesses to report owners and beneficial owners to an agency called the Financial Crimes Enforcement Network. The aim was to cut down on shell corporations and money laundering.
Small business advocates say the reporting requirements are too onerous — and an example of congressional overreach. An estimated 32 million small businesses must register personal information with FinCEN, such as a photo ID and home address.
