The U.S. Treasury Department announced Sunday it will not enforce an anti-money laundering law requiring millions of businesses to disclose their beneficial owners.
The decision effectively suspends penalties under the Corporate Transparency Act for U.S. citizens and domestic reporting companies.
The law, enacted during the Biden administration, has faced opposition from the Trump administration, which argues it places an undue burden on low-risk entities. Legal challenges have also delayed its implementation.
In a statement, the Treasury said the move aims to support American taxpayers and small businesses. It added that it plans to issue a rule narrowing the act’s application to foreign reporting companies.
Supporters of the measure argue it is necessary to curb illicit financial activities, as the U.S. has become an increasingly attractive destination for money laundering.
