We have some breaking news regarding the attempts to modernize the beneficial ownership rules. You are likely familiar with the Corporate Transparency Act (CTA) and the new rule for legal entities to register their beneficial owners with FinCEN. On December 3, 2024, the U.S. District Court for the Eastern District of Texas (Court) issued a nationwide preliminary injunction that temporarily blocks enforcement of the CTA.
The Court determined that the CTA and the associated Reporting Rule are likely unconstitutional and issued the injunction while it plays out in court. The ruling is not a final determination of the CTA’s constitutionality, but it temporarily halts enforcement while the case proceeds despite the original January 1, 2025, compliance deadline.
We can expect an appeal to the Fifth Circuit Court of Appeals and possibly to the U.S. Supreme Court. Also, Congress or FinCEN may take additional action before the end of the year. When you add a new Congress and Administration into the mix, chances are there will be a lot of uncertainty going forward! Kevin explains more in the video!
This is exactly why we are offering the BSA/AML/CFT Membership Group for your BSA/AML Team! Our monthly meetings we will cover all of the twists and turns with not only this Rule, but all the anticipated changes from the 2020 AML Reform initiatives! We will discuss new advisories and alerts from FinCEN and have an opportunity to take an interactive deep dive into BSA/AML/CFT topics, getting into details that could never be addressed during a normal webinar or training!
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