News Detail

Judge in Alabama Rules FinCEN’s Beneficial Ownership Reporting Regime is Unconstitutional

The future of the Financial Crimes Enforcement Network’s (FinCEN) recently implemented beneficial ownership reporting regime that SWACCA helped to shape is in doubt following a ruling out of the U.S. District Court for the Northern District of Alabama. In its ruling, the court concluded that the Corporate Transparency Act, which created the reporting regime, is “unconstitutional because it cannot be justified as an exercise of Congress’s enumerated powers."

The ruling prevents FinCEN from enforcing the beneficial ownership requirements on the plaintiff in the Alabama case, the National Small Business Association, a nonprofit trade group that represents more than 65,000 member companies. The Justice Department is expected to appeal the case to the circuit court.

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