In a groundbreaking decision, the U.S. District Court for the Eastern District of Texas has issued a preliminary injunction temporarily halting the enforcement of the Corporate Transparency Act (CTA). This ruling has significant implications for millions of businesses across the United States that are subject to the CTA’s Beneficial Ownership Information (BOI) reporting requirements.

What is the Corporate Transparency Act (CTA)?

The CTA, enacted in 2021 as part of the Anti-Money Laundering Act, requires corporations, LLCs, and similar entities to disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). The law aims to increase transparency in corporate ownership to combat financial crimes such as money laundering and terrorism financing.

Under the CTA, businesses deemed "reporting companies" must file detailed information about their beneficial owners, including:

• Full legal names.

• Dates of birth.

• Current residential or business addresses.

• Unique identification numbers from accepted forms of identification.

Failure to comply can result in severe civil and criminal penalties, including fines up to $10,000 and imprisonment for up to two years.

The Court’s Ruling

The court’s preliminary injunction pauses enforcement of the CTA nationwide, citing several constitutional concerns:

• Overreach of Federal Authority: The CTA encroaches on areas historically regulated by state law, violating principles of federalism.

• Privacy Concerns: The requirement to disclose sensitive personal information raises privacy and Fourth Amendment concerns.

• Burden on Small Businesses: The court acknowledged the disproportionate impact on small and medium-sized enterprises, which face significant compliance costs.

This ruling does not invalidate the CTA but prevents its enforcement while the case is under judicial review.

What Should LLCs and Reporting Companies Do Now?

1. Pause Filing Requirements: LLCs and other businesses classified as “reporting companies” under the CTA are not currently required to submit BOI reports to FinCEN. Businesses should hold off on filing until further legal clarity is provided.

2. Stay Informed: Monitor developments closely. The government is expected to appeal this decision, which could lead to the injunction being lifted or modified.

3. Prepare for Potential Compliance: While the injunction is in place, companies should remain prepared for potential compliance requirements. Consider identifying beneficial owners and gathering necessary documentation in case the law is reinstated.

4. Consult Legal Counsel: Seek advice on whether your business qualifies as a “reporting company” under the CTA and what exemptions, if any, may apply. Early preparation can help mitigate future compliance risks.

   
   

What’s Next?

The federal government has indicated its intent to appeal the injunction to the Eleventh Circuit Court of Appeals. If the appellate court overturns the ruling, enforcement of the CTA could resume. Ultimately, this case may reach the U.S. Supreme Court for a final determination on the law’s constitutionality.

Conclusion

For now, businesses subject to the CTA can breathe a temporary sigh of relief. However, the legal battle over the Act’s implementation and constitutionality is far from over. Businesses should remain vigilant and proactive, ensuring they are prepared to comply if and when the CTA is reinstated.

For further information or personalized guidance, please contact the legal team at DeHeng Chen LLC. We are closely monitoring this case and are here to assist with any questions or concerns.

联邦法院暂停执行《公司透明度法案》

近日，美国德克萨斯州东区联邦地区法院作出一项重要裁定，对《公司透明度法案》（CTA）的执行发布了初步禁令。这一裁定对全美数百万需要遵守CTA受益所有权信息（BOI）报告要求的企业具有重大影响。

什么是《公司透明度法案》（CTA）？

CTA于2021年作为《反洗钱法案》的一部分通过，要求公司、有限责任公司（LLCs）及类似实体向金融犯罪执法网络（FinCEN）披露其受益所有权信息。该法案旨在通过提高企业所有权的透明度，打击洗钱、恐怖主义融资等金融犯罪。

根据CTA，符合条件的“报告公司”必须提交其受益所有人的详细信息，包括：

• 受益所有人的全名；

• 出生日期；

• 当前的居住或营业地址；

• 接受的身份证件中的唯一识别号码。

不遵守规定可能导致严重的民事和刑事处罚，包括最高10,000美元的罚款和最长两年的监禁。

法院裁定

法院发布的初步禁令暂时停止了CTA的全国范围内执行，理由包括：

• 联邦权力过度扩张： CTA侵犯了传统上由州法律管辖的领域，违反了联邦主义原则。

• 隐私问题： 要求披露敏感的个人信息引发了隐私和《第四修正案》的担忧。

• 对小企业的负担： 法院承认，这项法案对中小企业的合规成本影响尤为显著。

这一裁定并未宣布CTA无效，而是在案件审理期间暂停其执行。

当前LLC和报告公司应如何应对？

1. 暂停报告要求： 被CTA定义为“报告公司”的LLC和其他企业，目前无需向FinCEN提交BOI报告。在法律进一步明确之前，请暂缓提交。

2. 保持信息更新： 密切关注相关动态。政府预计将对该裁定提出上诉，这可能导致禁令被撤销或修改。

3. 准备合规： 尽管禁令暂时生效，企业应为潜在的合规要求做好准备。建议尽早确认受益所有人并收集所需文件，以备法案恢复时使用。

4. 咨询法律顾问： 咨询律师以确定您的企业是否属于CTA定义的“报告公司”，以及是否有可能适用任何豁免条件。提前准备可降低未来的合规风险。

   
   

接下来的动态

联邦政府已表示将向第十一巡回上诉法院对禁令提出上诉。如果上诉法院推翻裁定，CTA的执行可能恢复。最终，该案件可能提交至美国最高法院，对法案的合宪性作出最终裁定。

总结

目前，受CTA影响的企业可以暂时松一口气。然而，围绕该法案执行和合宪性的法律斗争仍在持续。企业应保持警惕和主动，为CTA可能的恢复执行做好准备。

如果您需要进一步的信息或个性化指导，请联系德恒律师事务所的法律团队。我们正密切关注此案动态，随时为您提供咨询服务。