Beneficial Ownership Reporting Paused Amid Legal Ruling
December 4, 2024
On December 3, 2024, a federal judge in Texas issued a preliminary injunction temporarily blocking the enforcement of the Corporate Transparency Act (CTA) and its beneficial ownership reporting requirements. This ruling delays the January 1, 2025, compliance deadline for businesses required to report ownership information to the Financial Crimes Enforcement Network (FinCEN). The nationwide injunction is temporary and subject to further legal developments.
Considerations for Businesses
With the reporting requirements currently paused, businesses should consider the following:
- Stay Informed: Monitor updates on the case and any regulatory changes.
- Evaluate Readiness: Review internal processes and systems to ensure compliance readiness if reporting is reinstated.
- Consult Legal Guidance: Confer with legal professionals for clarity on the CTA as needed.
For more information on the ruling, see the American Bankers Association’s article, Federal Court Blocks Enforcement of Beneficial Ownership Reporting Rule.
LMC professionals actively track the latest updates and developments surrounding the CTA and its beneficial ownership reporting requirements. We are dedicated to staying informed and providing insights to keep clients aware of any developments that occur.