TBA Law Blog


Posted by: Azya Thornton on Dec 4, 2024

A federal judge in Texas has issued a nationwide injunction blocking enforcement of the 2021 Corporate Transparency Act, which requires corporate entities to disclose the identities of their real beneficial owners to the U.S. Treasury Department's Financial Crimes Enforcement Network. According to Reuters, U.S. District Judge Amos Mazzant sided with the National Federation of Independent Business and several small businesses and nonprofits in concluding that the act was likely unconstitutional. Mazzant called it an "unprecedented" attempt by the federal government to legislate in an area traditionally left to the states. The law, which is touted as an anti-money laundering tool law, directs the Treasury Department to collect and analyze submitted data to combat crime.