U.S. Treasury Suspends Enforcement Of Corporate Transparency Act

The U.S. Treasury Department has announced it will not enforce a key anti-money laundering law requiring businesses to disclose their beneficial owners under the Corporate Transparency Act (CTA). The decision suspends penalties for U.S. citizens and domestic reporting companies.

The CTA was introduced to increase corporate ownership transparency but faced opposition over compliance costs for small businesses. The Treasury plans to issue a rule limiting the law’s application to foreign reporting companies. Supporters argue the decision weakens efforts to combat illicit financial activities, while critics welcome relief from compliance burdens. The Treasury’s move does not repeal the law, and further regulatory adjustments may follow as financial transparency remains a policy focus.

The shift comes amid ongoing legal challenges and broader discussions on balancing business-friendly policies with financial crime prevention.