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Fatima Hussein, Associated Press
19 minutes ago
FILE – The Treasury Department is photographed in Washington near sunset on January 18, 2023. The U.S. has identified the deputy commander of Iran’s Islamic Revolutionary Guard Corps, members of the Houthi militia, companies registered in Hong Kong and the Marshall Islands, and two vessels, some of which transported $100 million worth of Iranian goods to China. Also included. The sanctions cut off access to U.S. property and bank accounts and prevent targeted individuals and businesses from doing business with Americans. (AP Photo/John Elswick, File)
WASHINGTON (AP) – In a blow to the Biden administration’s efforts to increase corporate transparency, a federal judge in Alabama has ruled that the U.S. Department of the Treasury has ruled against small business owners who profited from them and their businesses. It ruled that detailed reports on people cannot be required.
U.S. District Judge Lyles C. Burke said late Friday that the Corporate Transparency Act, America’s landmark anti-money laundering law enacted as part of the National Defense Authorization Act for fiscal year 2021, The court ruled that it was unconstitutional because it exceeded its authority. In other words, rulemaking under the Act is illegal.
The National Small Business Association filed a lawsuit in November 2022 to block a requirement that tens of millions of small businesses register with the government as part of an effort to prevent criminal abuse by anonymous shell companies.
Small business lobby groups say the reporting rules are unconstitutional because they unduly burden small businesses, violate privacy and free speech protections, and infringe on the state’s power to govern businesses. he claimed.
The legal challenge raises concerns about the upholding of privacy rights and the roots of criminal activity, especially as the United States seeks to sanction Russian oligarchs and wealthy friends in the wake of Russian President Vladimir Putin’s invasion of Ukraine. It points out the friction between the government’s efforts to clarify the
Burke, who was appointed to the federal bench by former President Donald Trump, called the Corporate Transparency Act “congressional overreach” and said, “The Corporate Transparency Act cannot be justified as an exercise of Congress’ enumerated powers and is therefore unconstitutional. It is,” he wrote.
“Congress overwhelmingly passed the bipartisan Corporate Transparency Act of 2021 to crack down on illegal shell companies and combat financial crime,” a Treasury spokesperson said. We are complying with the court’s injunction,” and referred The Associated Press to the Justice Department for further investigation.
“This is an act that undermines the rule of law, allows criminals to use fentanyl, is an affront to pro-crime drug cartels,” Ian Gary, executive director of the nonprofit FACT Coalition, which promotes corporate transparency, said in an email. “This is a ruling in favor of fentanyl.” An anonymous shell company hides dirty money from law enforcement. ”
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