Corporate Transparency Act Remains Federal Law Despite Exemptions and Congressional Challenges
The Corporate Transparency Act (CTA), enacted under President Trump as part of the Anti-Money Laundering Act of 2020, remains federal law, despite recent challenges and the issuance of a Final Rule by FinCEN that has drawn criticism. The CTA requires certain companies to report beneficial ownership information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to curb the abuse of anonymous shell companies. In December 2025, the U.S. Court of Appeals for the Eleventh Circuit upheld the law's constitutionality. However, FinCEN's August 2026 Final Rule significantly expanded exemptions, effectively eliminating reporting requirements for almost all U.S. entities and individuals, and only requiring reporting from certain foreign entities registered to do business in the U.S. This rule has been criticized by anti-corruption organizations and the U.S. Government Accountability Office (GAO) for creating gaps in beneficial ownership information.
