Supreme Court Revives Law Meant to Fight Money Laundering

Published On Jan 23, 2025, 2:45 PM

The Supreme Court has reinstated the Corporate Transparency Act, a federal law that requires companies to disclose ownership information to combat money laundering, drug trafficking, and terrorism. Critics of the law argue it is overly burdensome, particularly for small businesses, alleging it constitutes an unconstitutional federal overreach. The law, initially blocked by a federal judge, will now remain in effect while litigation continues regarding its constitutionality.

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The reinstatement of the Corporate Transparency Act could negatively impact small businesses that face increased compliance costs. Companies in sectors most affected, such as small business and technology, may experience stock price pressures due to potential higher operational costs and regulatory burdens.

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