Newsline

In the latest development in the ongoing Corporate Transparency Act debate, the Treasury Department’s Financial Crimes Enforcement Network announced on Feb. 27 that it will cease enforcement of the CTA while it crafts a new set of regulations that will ultimately narrow the scope of the reporting regime. The release comes as the CTA’s reporting requirements were scheduled to take effect once again beginning March 21.

On Jan. 23, the U.S. Supreme Court stayed a district court’s nationwide injunction against the Corporate Transparency Act’s Beneficial Ownership Information reporting requirements, following the U.S. Department of Justice’s request. The nationwide injunction had blocked enforcement of the CTA’s BOI reporting requirements. However, according to the Financial Crimes Enforcement Network’s website, a separate national injunction issued earlier this month by a different federal judge still remains in place, and thus reporting companies are not currently required to file BOI with the FinCen despite the Supreme Court’s action.