Supreme Court Upholds Corporate Transparency Act
WASHINGTON - The Supreme Court has reinstated a regulation that mandates millions of small business owners to register with the Treasury Department's Financial Crimes Enforcement Network (FinCEN). The mandate aims to combat money laundering and other financial offenses.
The Corporate Transparency Act, passed in 2021, requires an estimated 32.6 million small business owners to provide personal details, such as photo IDs and residential addresses, to FinCEN.
Enforcement of the law faced legal challenges, with a Texas federal judge blocking it on the grounds of Congress's alleged lack of authority. The 5th U.S. Circuit Court of Appeals upheld the injunction pending review of the lower court's ruling.
However, the Supreme Court's recent decision allows the registration requirement to be implemented while the Texas case progresses through the court system.