The U.S. Treasury Department announced Sunday it suspending enforcement of the Corporate Transparency Act, which would have required companies to file beneficial ownership documents with the Financial Crimes Enforcement Network.
The announcement from U.S. Secretary of Treasury Scott Bessent followed a recent court ruling that would have required businesses to comply with the CTA and file the documents by March 21 or face penalties.
The treasury department announced it would not enforce any penalties or fines against U.S. citizens or domestic companies. The department will also be working to narrow the scope of the rule to “foreign reporting companies.” The announcement did not define foreign reporting companies.
“This is a victory for common sense,” Bessent said in a press release. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
NIADA will continue to update members on changes with laws and regulations and urges members to stay abreast of happenings in the industry through its weekly Dashboard emails and UCD magazine.
