Following a Dec. 26 order from the Fifth Circuit Court of Appeals, the January deadline for covered companies to register beneficial ownership information has been put on hold again.
On December 23, the 5th Circuit ruled on a Texas case challenging the Corporate Transparency Act, which requires covered companies to report beneficial ownership information to the Financial Crimes Enforcement Network. The nationwide injunction that had been issued was rescinded. Three days later, a Fifth Circuit judge considering the merits of the government’s appeal of the preliminary injunction “to preserve the constitutional status quo while the merits committee considers the parties’ important substantive claims.” The committee reversed its decision and issued a judgment. Re-ordered enforcement of the reporting rules and CTA.
The Texas lawsuit was brought by the National Federation of Independent Business and several of its members. Plaintiffs argue that the CTA exceeds Congress’s authority to regulate interstate commerce, violates the First Amendment by forcing speech and violating freedom of association, and violates the First Amendment by forcing disclosure of personal information. It was argued that Article 4 was violated.
Bankers should monitor FinCEN’s BOI page for updates and revised instructions.
