In a blow to government efforts to combat money laundering, a federal court has ruled that the Treasury Department cannot require some small businesses to report personal details about their owners.
The law, the Corporate Transparency Act, passed with bipartisan support in Congress and was intended to help the Treasury Department’s financial-crimes division identify money launderers who hide behind shell corporations.
But in a ruling issued late Friday, Judge Liles C. Burke of the U.S. District Court in Huntsville, Ala., sided with critics of the law.
“Congress sometimes enacts smart laws that violate the Constitution,” Judge Burke wrote in a 53-page filing.
“This case, which concerns the constitutionality of the Corporate Transparency Act, illustrates that principle.”
Persons:
Judge Liles C, Burke, ”
Organizations:
Treasury Department, U.S
Locations:
Huntsville, Ala