Circuit Court Ruling Challenged
The CTA, enacted in 2021, requires specified entities — including many small businesses — to report personal information about their “beneficial owners” to Treasury’s Financial Crimes Enforcement Network (FinCEN). The law is aimed at layered corporate structures that facilitate money laundering, fraud, trafficking, and other illicit activities.
However, entities subject to the CTA’s reporting rules have brought constitutional challenges in courts around the country. NSBA prevailed at the district court level, with the U.S. District Court for the Northern District of Alabama ruling that the CTA is unconstitutional because Congress exceeded its authority by regulating the “non-commercial act of incorporation.”
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