Federal Court Says ‘Sensible’ Corporate Transparency Act is Unconstitutional

An Alabama federal court ruled that the Corporate Transparency Act (CTA) is unconstitutional, leaving the policy’s future unclear. In 2021, Congress enacted legislation mandating companies to share their identities and information about beneficial owners. The law, which went into effect in January, was designed to combat illicit activity, including monetary laundering, tax fraud, and terrorist financing. Violations would lead to a fine of up to $10,000 and two years in prison. U.S. administration officials championed the bill as a vital tool for law enforcement and national security agencies to crack down on criminals, corrupt individuals, and other players who may exploit the U.S. financial system for illegal pursuits....