corporate transparency act
Corporate Transparency Act: A Step Towards Combating Illicit Finance
Main Narrative
In a significant development, the Supreme Court has allowed the enforcement of the Corporate Transparency Act (CTA) to proceed, a move aimed at combating money laundering and illicit finance. The CTA, enacted in 2021, requires businesses to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This reporting requirement was temporarily suspended due to ongoing litigation, but the Supreme Court's decision paves the way for its implementation.
As reported by Yahoo Finance, the Supreme Court's decision allows the small business registration rule to take effect, aimed at preventing money laundering (Yahoo Finance, 2025). The Bloomberg Law reported that the Supreme Court has allowed the enforcement of the Corporate Transparency Act (Bloomberg Law, 2025). The New York Times stated that the Supreme Court has revived the law meant to fight money laundering (The New York Times, 2025).
Recent Updates
Recent developments in the Corporate Transparency Act have been marked by a series of announcements and temporary suspensions. On January 2, 2025, FinCEN announced that it was once again temporarily suspending the mandatory reporting requirements under the CTA due to ongoing litigation (FinCEN, 2025). However, with the Supreme Court's recent decision, the reporting requirement is expected to resume.
In a client alert, law firm Baker McKenzie noted that the FinCEN announcement was made in response to a court order blocking the enforcement of the CTA (Baker McKenzie, 2025). However, with the Supreme Court's decision, the CTA is now set to move forward. The Ohio Secretary of State's website provides information on the federal legislation that requires businesses to report beneficial ownership information to FinCEN (Ohio Secretary of State, 2025).
Contextual Background
The Corporate Transparency Act was enacted in 2021 as part of a broader effort to combat illicit finance. The law requires businesses to report beneficial ownership information to FinCEN, which will be used to prevent money laundering, drug trafficking, terrorism, and corruption. The U.S. Department of the Treasury launched a registry to collect information about the owners and controllers of companies doing business in the U.S. (U.S. Department of the Treasury, 2021).
The CTA has been hailed as a crucial step towards combating illicit finance, but its implementation has been met with resistance from some business groups. The law's supporters argue that it will help to prevent money laundering and other illicit activities, while its opponents argue that it will impose an undue burden on small businesses.
Immediate Effects
The Supreme Court's decision to allow the enforcement of the CTA is expected to have significant implications for businesses across the U.S. As reported by CBS News, the CTA will require millions of small business owners to register with FinCEN (CBS News, 2025). This will involve providing detailed information about the beneficial owners of their businesses, which will be used to prevent money laundering and other illicit activities.
The immediate effects of the CTA will be felt by businesses that fail to comply with the reporting requirements. Failure to comply may result in fines and other penalties, which could have significant financial implications for businesses. In addition, the CTA will also have implications for law enforcement agencies, which will be able to use the reported information to investigate and prevent illicit activities.
Future Outlook
Based on evidence and trends, it is likely that the CTA will continue to play a significant role in combating illicit finance in the U.S. The law's supporters argue that it will help to prevent money laundering and other illicit activities, while its opponents argue that it will impose an undue burden on small businesses.
As the CTA is implemented, it is likely that we will see a significant increase in the reporting of beneficial ownership information. This will provide law enforcement agencies with valuable information to investigate and prevent illicit activities. However, it also raises concerns about the potential impact on small businesses, which may struggle to comply with the reporting requirements.
In conclusion, the Corporate Transparency Act is a significant development in the fight against illicit finance in the U.S. The Supreme Court's decision to allow its enforcement paves the way for its implementation, which will require businesses to report beneficial ownership information to FinCEN. While the CTA will have significant implications for businesses and law enforcement agencies, its long-term impact remains to be seen.
Sources
- Yahoo Finance: Supreme Court allows small business registration rule to take effect, aimed at money laundering
- Bloomberg Law: Supreme Court Allows Enforcement of Corporate Transparency Act
- The New York Times: Supreme Court Revives Law Meant to Fight Money Laundering
- FinCEN: Beneficial Ownership Information Reporting | FinCEN.gov
- Baker McKenzie: Client Alert: Corporate Transparency Act Reporting Continues to be
- Ohio Secretary of State: The Corporate Transparency Act - Ohio Secretary of State
- U.S. Department of the Treasury: U.S. Beneficial Ownership Information Registry Now Accepting Reports
- CBS News: What is the deadline for registering with FinCEN?