Investing.com -- The U.S. Supreme Court has paved the way for the enforcement of a federal anti-money laundering law. This law mandates that corporate entities must disclose the identities of their real beneficial owners to the U.S. Treasury Department.
The justices suspended a nationwide injunction on Thursday that was issued on Dec. 3 by a federal judge in Texas. The judge had determined that Congress had exceeded its powers under the U.S. Constitution when it passed the Corporate Transparency Act. This law, which was enacted in 2021, faced legal challenges from small businesses.
The Supreme Court's decision came after the 5th U.S. Circuit Court of Appeals, based in New Orleans, permitted the injunction to be implemented ahead of a Jan. 13 deadline. The majority of companies were expected to submit their initial reports to the Treasury Department's Financial Crimes Enforcement Network, also known as FinCEN, by this date.
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