A multi-state coalition of attorneys general has filed a lawsuit in federal district court against the U.S. Department of the Treasury and the Financial Crimes Enforcement Network, challenging regulatory exemptions granted under the Corporate Transparency Act. The legal complaint asserts that federal regulators exceeded their statutory rulemaking authority by creating broad carve-outs that excuse certain commercial entities from disclosing their beneficial ownership registries.
Enacted by Congress to curb illicit financing, tax evasion, and international money laundering, the Corporate Transparency Act requires millions of corporations and limited liability companies to submit verifiable identity information regarding individuals who maintain substantial control or ownership stakes. The attorneys general argue that the disputed regulatory exceptions undermine national transparency mandates and impede law enforcement investigations into shell corporations used for deceptive financial transactions. The lawsuit requests that the court vacate the agency guidelines and order regulators to enforce comprehensive reporting mandates across all designated corporate structures.
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Sources:
https://www.courthousenews.com/attorneys-general-sue-treasury-department-over-corporate-ownership-reporting-exemptions/