Important Update for Business Owners: Corporate Transparency Act Mandates Paused

On Tuesday, a federal judge, in Texas, issued a nationwide injunction blocking the enforcement of the Corporate Transparency Act’s (CTA) beneficial ownership reporting requirements. The court deemed the CTA likely unconstitutional, prohibiting the government from implementing its mandates for now. The CTA, enacted as part of broader anti-money laundering efforts, mandates companies to disclose their beneficial ownership information to a federal database maintained by the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN)

Why This Matters to me?

Previously, small businesses meeting specific criteria were required to file ownership reports with the Department of the Treasury by January 1, 2025, under threat of significant fines and criminal penalties.

What Happens Now?

The injunction will remain in effect as legal proceedings continue, with the possibility of a permanent injunction pending the case's outcome. The federal government is expected to appeal this decision. If you have already filed the report for your business, there is nothing you need to do.

We are monitoring this situation and will provide updates as new developments emerge.

Click here for information from FinCEN: https://fincen.gov/

*Oddo Financial Services does not provide legal advice.