Supreme Court Reinstates

The U.S. Supreme Court has agreed to reinstate a federal anti-money laundering law at the federal government’s request while legal challenges continue in a lower court.

The court issued an emergency stay, temporarily blocking a federal judge’s injunction against the Corporate Transparency Act (CTA). This law mandates that millions of business entities disclose personal information about their owners to combat money laundering and financial crimes. Notably, Justice Ketanji Brown Jackson was the lone dissenter in the ruling.

The Biden-era Justice Department petitioned the Supreme Court late last month, urging it to uphold the CTA while the case plays out. The justices ruled just three days after President Trump’s inauguration, though Trump’s administration had previously opposed the law during his first term.

Originally passed in early 2021 as part of the annual defense bill, the Corporate Transparency Act requires small business owners to submit personal details such as birth dates and addresses to the Financial Crimes Enforcement Network (FinCEN). The goal is to increase transparency and curb illicit financial activity, but the law has sparked pushback.

Business groups and anti-regulatory advocates have actively challenged the measure, seeking to delay the upcoming compliance deadline. The legal battle continues in the lower courts, but for now, the Supreme Court’s ruling keeps the CTA in effect.