Judge’s ruling calls FinCEN beneficial ownership registry into question
By 
Aaron Nicodemus2024-03-05T18:30:00
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.”
Related articles
-
News BriefFinCEN drops BOI requirement for U.S. companies, persons
The U.S. Treasury Department’s Financial Crimes Enforcement Network issued a final interim rule that eliminates beneficial ownership information reporting obligations for U.S.-based companies and persons.
-
News BriefTwo senators want to know: What’s the legal basis for suspending enforcement of the CTA?
Two senators behind the Corporate Transparency Act have demanded that U.S. Treasury Secretary Scott Bessent justify his suspension of one of the law’s anti-money laundering requirements.
-
News BriefTreasury announces plan to narrow CTA's scope; FinCEN says no fines, penalties for failure to report BOI
The Treasury Department’s Financial Crimes Enforcement Network notified businesses that fail to report or update their beneficial ownership information before the agency’s March 21 deadline will not face fines or penalties. The agency further said it would not enforce the Corporate Transparency Act against U.S. citizens and domestic businesses.
More from Regulatory Policy
-
ArticleU.K. proposes streamlining regime meant to hold fin serve executives to account
When growth slows, governments often cut rules to attract investment, as the U.K. has in its financial services sector, which contributes 8.8% of GDP, but easing the “compliance burden” raises concerns about oversight, governance, and prioritizing profits over safety.
-
ArticleCompliance teams urged to prepare as U.K. Employment Rights Bill nears passage
The U.K. Employment Rights Bill is expected to pass into law this year and will affect millions of workers. Compliance managers are advised to hone their understanding of HR and equality issues in preparation.
-
ArticleEPA’s Zeldin unveils plan to kill rule that curbs vehicle air pollution
The U.S. Environmental Protection Agency has placed a decades-old rule that limits air pollution from cars and trucks on the chopping block, potentially endangering the Clean Air Act.