The Trump administration has opposed the Biden-era Corporate Transparency Act on the grounds that it is a burden on low-risk entities. In a statement, the Treasury Department said it would not enforce any penalties under the act against U.S. citizens or domestic reporting companies. "Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses," it said, adding that it intended to issue a rule to narrow the scope of the act to foreign reporting companies.

Reuters Sun, March 2, 2025 at 5:50 p.m. PST 1 min read

(Reuters) - The U.S. Treasury Department said on Sunday it would not enforce an anti-money laundering law that obliges millions of business entities to disclose the identities of their real beneficial owners.

The Trump administration has opposed the Biden-era Corporate Transparency Act on the grounds that it is a burden on low-risk entities. The act has faced repeated legal challenges.

In a statement, the Treasury Department said it would not enforce any penalties under the act against U.S. citizens or domestic reporting companies.

“Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses,” it said, adding that it intended to issue a rule to narrow the scope of the act to foreign reporting companies.

The measure’s supporters say it was designed to address the growing popularity of the United States as a venue for criminals to launder illicit funds.

(Reporting by David Ljunggren; Editing by Jamie Freed)

  • @[email protected]English
    15•1 day ago

    In a statement, the Treasury Department said it would not enforce any penalties under the act against U.S. citizens or domestic reporting companies.

    Didn’t they just announce last week that literally anyone can pay $1M to get US citizenship without having to do anything so bothersome as starting a business here or creating jobs?

    • @Remember_the_toothOP
      4•1 day ago

      Then, they’ll be American citizens who are also wealthy. They’re very rarely criminals. Just look at their incarceration rates! Practically insignificant.