Supreme Court Clears Path for Corporate Transparency Act Enforcement

The ruling lifts a nationwide injunction, allowing the Treasury Department to enforce beneficial ownership reporting requirements while legal challenges continue.

• The U.S. Supreme Court granted a stay on a Texas court's nationwide injunction, enabling enforcement of the Corporate Transparency Act (CTA).
• The CTA, passed in 2021, mandates businesses to report beneficial ownership information to FinCEN to combat financial crimes like money laundering.
• The Court's decision is procedural and does not address the constitutionality of the CTA, which remains under legal challenge in lower courts.
• Justice Gorsuch supported the stay but called for the Court to address the broader issue of universal injunctions, while Justice Jackson dissented, citing insufficient urgency for intervention.
• FinCEN is expected to update filing deadlines soon, but businesses are advised to monitor developments as other cases challenging the CTA are still pending.

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