Trump Administration Sued over Rollback of Corporate Ownership Reporting Rules
The states say the rule exempts more than 99.9% of companies from ownership reporting, weakening anti-corruption enforcement.
- On Tuesday, a coalition of 21 attorneys general, led by Illinois Attorney General Kwame Raoul and Oregon Attorney General Dan Rayfield, sued the Trump administration over a Treasury Department rule gutting the 2021 Corporate Transparency Act.
- In August, the Treasury Department enacted a rule exempting more than 99.9% of businesses from reporting beneficial ownership information. Treasury Secretary Scott Bessent called the change a "victory for common sense."
- The lawsuit alleges the Treasury violated the Administrative Procedure Act, the Corporate Transparency Act, and the U.S. Constitution. Plaintiffs argue the executive branch cannot repeal acts of Congress through rulemaking, calling the exemptions "arbitrary and capricious."
- Seeking to block the rule, the coalition asked the court to prevent the Financial Crimes Enforcement Network from purging existing ownership records. Officials warn the rollback deprives law enforcement of essential data needed to catch money launderers and tax cheats.
- Small business groups like the National Small Business Association supported the rollback, citing average compliance costs of nearly $8,000. State attorneys general warn anonymous shell companies facilitate illegal activities including drug trafficking and money laundering.
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14 Articles
Legal Showdown: 21 Attorneys General Sue Over Axed Business Ownership Rules
A coalition of 20 state attorneys general and the District of Columbia filed a federal lawsuit challenging recent administrative changes to the Corporate Transparency Act, Michigan Attorney General Dana Nessel announced Thursday. The legal action targets policy directives issued by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network, known as FinCEN. Under a […] Legal Showdown: 21 Attorneys General Sue Over Axed Business O…
Attorney General Raoul Leads Lawsuit Against Trump Administration Rule That Guts Corporate Transparency Act
CHICAGO – Attorney General Kwame Raoul and Oregon Attorney General Dan Rayfield co-led a coalition of 21 attorneys general in a lawsuit to stop the Trump administration from gutting the Corporate Transparency Act, which helps police and prosecutors catch money launderers, fraudsters and tax cheats.In their lawsuit, Raoul and the attorneys general challenge a new regulation that overturns a legal rule in the Corporate Transparency Act that requir…
Trump administration sued over rollback of corporate ownership reporting rules
WASHINGTON — Twenty-one U.S. states and the District of Columbia sued President Donald Trump's administration Tuesday over its rollback of reporting requirements established under a 2021 law aimed at combating illicit finance.
Attorneys general sue Treasury Department over corporate ownership reporting exemptions
(CN) — A coalition of 21 state attorneys general sued the Trump administration Tuesday to stop a Treasury Department regulation that exempts companies from reporting ownership information. The coalition filed the lawsuit in the U.S. District Court for the District of Oregon. The attorneys general say the department ignored Congress’ judgment in adopting the new exemptions, violating the Administrative Procedure Act, the Corporate Transparency Ac…
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