A federal court in Alabama has ruled the Corporate Transparency Act unconstitutional, following a challenge by the National Small Business Association. The law, aimed at combating money laundering by requiring businesses to report owners and beneficial owners to the Financial Crimes Enforcement Network, has been criticized by small business advocates as overly burdensome.
The ruling, issued on March 1, is seen as a victory for the NSBA, which represents over 65,000 small businesses. The Justice Department has announced plans to appeal the decision.
