Companies Mull Challenges from Corporate Transparency Ruling (1)

A federal court’s ruling that the anti-money laundering Corporate Transparency Act of 2021 is unconstitutional could mean years of appeals in the courts, and leaves businesses unsure how to proceed or whether to follow with legal challenges of their own.

US District Court for the Northern District of Alabama Judge Liles Burke ruled March 1 that the law requiring businesses to report their “beneficial ownership” to the Treasury Department is unconstitutional. The suit against the CTA was brought by the National Small Business Association against Treasury.

Under the CTA, companies must reveal the identities and other detailed information about the ...