Federal Court Issues Nationwide Injunction Prohibiting Enforcement of the Corporate Transparency Act

By Bryce Morrison

On Tuesday, December 3, 2024, a federal court in Texas issued a nationwide preliminary injunction prohibiting the enforcement of the Corporate Transparency Act (CTA), temporarily halting its implementation across the United States.

The court’s decision comes as a result of a legal challenge to the CTA, which was enacted to enhance corporate transparency and combat money laundering and other illicit financial activities. The injunction prevents the United States Department of the Treasury from enforcing certain provisions of the CTA that would require United States entities to disclose their beneficial owners to federal authorities.

As we continue to monitor developments in this case and its impacts on business and stakeholders, it remains important for entities to stay prepared to comply with the CTA. Should the injunction be lifted, businesses will need to be ready to meet the requirements of the CTA. For this reason, we recommend continuing to assess and prepare for compliance with the CTA to ensure timely and effective action if the injunction is lifted.

For additional information or guidance related to this decision, contact Bryce Morrison at bmorrison@bernsteinshur.com.