Supreme Court's Decision Revives Controversial Corporate Transparency Act

The Supreme Court has reinstated a critical requirement for millions of small businesses to register with the Treasury Department, aiming to tackle money laundering and financial fraud. This decision marks a significant step in enforcing the Corporate Transparency Act, enacted in 2021 to fight the illicit use of anonymous shell companies.

The Corporate Transparency Act mandates the disclosure of personal information, including photo IDs and home addresses, to the Financial Crimes Enforcement Network (FinCEN). However, the Trump administration and conservative groups have shown resistance, questioning the authority of Congress to enact such a law.

A Texas federal judge initially blocked the Act, arguing that Congress lacked the authority. The recent Supreme Court action, however, allows for its enforcement as the case progresses through the judiciary. Small business groups remain concerned, citing disruption and uncertainty, urging Congress to delay or repeal the Act.

(With inputs from agencies.)