By means of Adrian Appel09-12-2024T14:08:00



Department of Finance


Business owners can stop preparing their 2025 anti-money laundering (AML) reports for the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), according to a Texas court, which ruled that the Corporate Transparency Act (CTA) requirement was unconstitutional.


An AML requirement that companies operating in the US submit corporate beneficial ownership (BOI) information to FINCEN has been halted by a Texas court.


Companies doing business in the U.S. were required to provide basic information about anyone with 25 percent or more ownership to FINCEN starting in 2025, under the CTA’s 2021 BOI reporting rule. The information would include names, dates of birth, addresses and copies of driver’s licenses or passports of the owners. About 37 million owners would have to file the reports.


A growing opposition arguing against the rule’s constitutionality ultimately reached a tipping point with the Texas court’s decision. Although compliance professionals should take note, the ruling will likely be appealed to the Supreme Court.



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