Senators Grassley and Whitehouse Criticize Treasury Department's Exemption to Corporate Transparency Act
U.S. Senators Chuck Grassley (R-Iowa) and Sheldon Whitehouse (D-R.I.) have issued a joint statement criticizing the U.S. Financial Crimes Enforcement Network (FinCEN)'s final rule, which permanently exempts over 99% of entities previously required to report beneficial ownership information under the Corporate Transparency Act (CTA). The CTA, passed with strong bipartisan support, was designed to combat money laundering, terrorist financing, and other illicit financial activities by requiring companies to disclose their true owners. The senators, who were original sponsors of the CTA's precursor, argue that exempting U.S.-based companies from these reporting requirements undermines the law's intent. This final rule follows a March 2025 announcement by the Treasury Department to narrow the scope of the rule to foreign reporting companies only and to eliminate reporting requirements for most domestic corporations and LLCs. 
