As we shared in an update last week, a federal district court issued a preliminary injunction temporarily blocking enforcement of the Corporate Transparency Act (CTA) and its reporting rule. This nationwide ruling halts the requirement for reporting companies to disclose beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). As a result, companies subject to the CTA’s reporting requirements are now exempt from filing beneficial ownership reports until further notice.
In response, FinCEN has stated:
“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”
On December 5, 2024, the Department of Justice filed a Notice of Appeal on behalf of the Department of the Treasury, signaling the government’s intent to challenge the court’s decision. This legal action underscores the continued debate over the CTA, which was enacted to combat illicit financial activities but has faced challenges over its implications for confidentiality and compliance burdens.
Bridgeford Trust Company’s CTA Resource Page
The ongoing legal developments surrounding the CTA highlight the complexities of this legislation and its implications for businesses. To help advisors and clients stay informed, Bridgeford Trust Company has created a dedicated CTA Resource Page, offering timely updates and insights.
The landscape surrounding the CTA is evolving rapidly, and Bridgeford Trust Company will continue to monitor developments closely. We encourage you to explore the resources on our CTA Resource Page, and if you have any questions, feel free to reach out via our contact form or by calling us at (605) 224-9189.
