Judge’s ruling calls FinCEN beneficial ownership registry into question

A federal court judge in Alabama ruled a provision in the Corporate Transparency Act (CTA) was beyond Congress’s power, potentially throwing the effectiveness of the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) beneficial ownership information (BOI) registry into doubt.

U.S. District Judge Liles Burke of the Northern District of Alabama ruled Friday in the case of the National Small Business Association (NSBA) v. Janet Yellen, arguing the CTA was unconstitutional.

“[E]ven in the pursuit of sensible and praiseworthy ends, Congress sometimes enacts smart laws that violate the Constitution,” Judge Burke wrote. “This case, which concerns the constitutionality of the Corporate Transparency Act, illustrates that principle.”