The U.S. Treasury Department has announced that it will not enforce a Biden-era small business rule designed to combat money laundering and shell company formation. The rule, which required most American businesses with fewer than 20 employees to register their business owners with the government, has faced opposition from small business advocates.
The beneficial ownership information database, created during the Biden administration, was intended to track down money launderers and criminals by collecting personal information on the owners of at least 32 million U.S. businesses. Despite efforts to challenge the rule in court, it remains in effect.
