(Reuters) – The U.S. Treasury Department said on Sunday it would not enforce anti-money laundering laws that require millions of business entities to disclose the identities of genuine and beneficial owners.
The Trump administration is opposed to Biden-era Corporate Transparency Act on the grounds that it is a burden on low-risk entities. The law faces repeated legal challenges.
In a statement, the Treasury Department said it would not enforce legal penalties against U.S. citizens or domestic reporting companies.
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“The Treasury has taken this step to support hard-working American taxpayers and small businesses,” he said, adding that it was intended to issue rules to foreign reporting companies to narrow the scope of the law.
Supporters of the measure say it was designed to address the growing popularity of the US as a venue for criminals to wash illegal funds.
(Reporting by David Ljunggren, Editing by Jamie Freed)
