Emmanuelle Subar Litvinov’s Post

❗Breaking News for Businesses! The Corporate Transparency Act’s reporting requirements are on hold nationwide, following a Texas court ruling questioning their constitutionality. Businesses have a reprieve, but the legal fight isn’t over. In our latest DE Insight, Michael Raposa shares what’s next and why staying prepared is crucial. 🔍

🛑 CTA Update: A federal injunction has put the brakes on the Corporate Transparency Act. While the Jan. 1., 2025 deadline for beneficial ownership reporting is paused, this legal twist could change quickly. Michael Raposa shares what businesses need to know to stay ahead in our latest DE Insight. 🔍 https://lnkd.in/duEqCFj6

On Friday, the United States District for the Northern District of Alabama found the Corporate Transparency Act unconstitutional, enjoining the federal government from enforcing the Act's beneficial ownership information (BOI) reporting requirements. I expect the government to appeal the Court's decision. With the initial reporting deadline just days away, I expect (hope?) that Treasury will issue guidance as to whether it will postpone reporting deadlines pending appeal. The full opinion is linked below and is well worth a read. Here's a teaser: The late Justice Antonin Scalia once remarked that federal judges should have a rubber stamp that says STUPID BUT CONSTITUTIONAL.... The Constitution, in other words, does not allow judges to strike down a law merely because it is burdensome, foolish, or offensive. Yet the inverse is also true—the wisdom of a policy is no guarantee of its constitutionality. Indeed, even in the pursuit of sensible and praiseworthy ends, Congress sometimes enacts smart laws that violate the Constitution. This case, which concerns the constitutionality of the Corporate Transparency Act, illustrates that principle.

Interesting to see the debate on transparency of business ownership in the USA. It has largely been resolved in Latvia with full disclosure of ultimate beneficial owners as part of the transformation of Latvian financial market that we - the market players - implemented together with Latvijas Banka / Latvijas Banka in English and the Latvian Register of Enterprises. It has lead to a very important conclusion - that transparency of business ownership is the fundamental building block of the compliance process and - that it actually creates operational clarity for banks and other financial institutions. Compliance process in itself is costly, but - transparency brings the benefit of clarity, that outweighs the cost in the long run. #banking #compliance #financialmarkets #finance

🚨 Compliance Alert: A federal court has hit the pause button on the Corporate Transparency Act, temporarily halting the need for businesses to meet the Jan. 1, 2025 compliance deadline. What does this mean for companies and beneficial owners? Michael J. Raposa, Esq. shares the latest in our latest DE Insight. ⚖️

⚖️ Big News: The Corporate Transparency Act (CTA) Constitutionality – Oregon District Court Denies Preliminary Injunction ⚖️ A recent decision from an Oregon District Court suggests that the Corporate Transparency Act is likely here to stay, as the court denied a preliminary injunction challenging its constitutionality. This ruling reinforces the CTA's requirements for Beneficial Ownership Information (BOI) reporting, impacting businesses across the U.S. in the next 97 days, or sooner! In our latest article, we dive into: - 🔍 The implications of this court ruling - 📋 What this means for BOI reporting compliance - 🗓️ Key deadlines and steps for businesses and legal professionals This decision is a major development for anyone navigating CTA compliance. Make sure your business or your clients are prepared for the BOI reporting obligations! 🔗 Read the full article to stay informed: https://lnkd.in/erdj2wEZ #CorporateTransparencyAct #BOIReporting #LegalUpdates #Compliance #FinCEN #OregonDistrictCourt #FileForms Kenneth Dettman, CPA

Major Development in Corporate Transparency Act (CTA) Enforcement A federal district court in Texas has issued a nationwide preliminary injunction halting enforcement of the Corporate Transparency Act (CTA), citing the law’s “likely unconstitutionality.” This ruling, issued just weeks before the January 1, 2025 reporting deadline for entities formed before 2024, contrasts with prior federal court decisions upholding the CTA’s constitutionality. The ruling highlights the ongoing legal uncertainty surrounding the CTA, which mandates reporting beneficial ownership information to combat financial crimes. Companies should consult legal counsel to determine whether to meet the filing deadline or await further developments. Read more about this significant decision:

🚨 Important Update: Corporate Transparency Act (CTA) Compliance Deadline 🚨 The Corporate Transparency Act (CTA) compliance deadline has been put on hold following a nationwide preliminary injunction. On December 3, 2024, U.S. District Judge Amos Mazzant ruled that the CTA and Financial Crimes Enforcement Network, US Treasury (FinCEN) Beneficial Ownership Information (BOI) Reporting Rule may be unconstitutional, staying the January 1, 2025, compliance deadline. What does this mean for businesses? While the government may appeal, the upcoming leadership change at the Department of Justice leaves the future of the reporting requirements for the CTA uncertain. What action should you take? We recommend continuing preparations for BOI filings but not filing them until further guidance is provided by the courts and regulators. Please note some state-level transparency laws may still apply, so those who have filed their BOI reports previously should be able to rely on those filings in order to maintain a good standing status with the FinCEN as well as assisting you with future reporting requirements. Goosmann Law Firm will continue monitoring updates and provide guidance as new developments unfold. Stay informed and contact us with any questions about compliance or what this means for your business! https://lnkd.in/gRDtgZvF #CorporateTransparencyAct #Compliance #LegalUpdates #GoosmannLaw

🚨 Compliance Alert for Businesses: 🚨 A federal court has hit the pause button on the Corporate Transparency Act, temporarily halting the need to meet the Jan. 1, 2025 compliance deadline. What does this mean for companies and beneficial owners? Michael J. Raposa, Esq. explains in our latest DE Insight. ⚖️ https://lnkd.in/gekg6Aub

Despite current legal challenges, the first group of folks are about to navigate the new reporting required under the Corporate Transparency Act. An interesting read by my partner Greg LeSaint.