The U.S. Supreme Court has reinstated the Corporate Transparency Act (CTA), a federal law requiring businesses to disclose ownership information to the Financial Crimes Enforcement Network (FinCEN). Aimed at preventing money laundering, terrorism financing, and other illicit activities, the law had been blocked by a federal judge who argued it exceeded Congress’s constitutional authority.

Critics claim the CTA imposes heavy burdens on small businesses, including homeowners’ associations and family trusts, and raises privacy concerns. While the reinstatement mandates compliance, the court’s decision does not address specific deadlines for reporting, leaving businesses uncertain about immediate obligations.

Legal challenges continue, with hearings scheduled in March, leaving the law’s long-term future unclear. Businesses are advised to comply promptly while monitoring further developments.