The U.S. Supreme Court agreed to reinstate a federal anti-money laundering law at the request of the federal government while a legal challenge continues in a lower court.
The court’s emergency stay temporarily halts a federal judge’s injunction that had blocked the Corporate Transparency Act (CTA), which mandates that millions of business entities disclose personal information about their owners, noting that Justice Ketanji Brown Jackson was the lone dissenter.
Late last month, the Biden-era Justice Department requested the high court’s intervention, and the court issued its ruling just three days after President Trump’s inauguration. While Trump’s Justice Department did not withdraw the application, he had opposed the new law during his first term in office.
Passed as part of the annual defense bill in early 2021, the Corporate Transparency Act (CTA) requires millions of small business owners to provide personal information, such as dates of birth and addresses, to the Financial Crimes Enforcement Network, which aims to combat money laundering and other crimes, the report continued.
The dispute has drawn significant attention from business groups and anti-regulatory advocates, who are working to delay the impending deadline, the outlet added.