WASHINGTON— A federal court has removed its nationwide injunction on collecting beneficial ownership information, referencing a U.S. Supreme Court ruling in a separate case regarding the constitutionality of the Corporate Transparency Act, the ABA Banking Journal reported.
The Corporate Transparency Act (CTA) mandates that covered businesses report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network. However, the reporting requirements have faced multiple legal challenges. In January, the Supreme Court temporarily lifted an appeals court’s nationwide injunction against enforcing the law in Texas Top Cop Shop v. Garland. Despite this decision, covered businesses were not yet required to report their BOI, as a separate nationwide injunction issued by the U.S. District Court for the Eastern District of Texas in Smith v. U.S. Department of the Treasury remained in effect, ABA Banking Journal explained.
District Judge Jeremy Kernodle yesterday stayed the injunction in Smith, citing the Supreme Court’s decision in Texas Top Cop Shop. As a result, the CTA is no longer enjoined while the courts continue weighing the merits of the lawsuits, ABA Banking Journal explained.
ABA Banking Journal noted that FinCEN had not updated its website as of Tuesday afternoon and has not issued any revised deadlines.
“However, the House last week passed bipartisan legislation to extend the reporting deadline to Jan. 1, 2026. The bill, which has been endorsed by the American Bankers Association, now moves to the Senate,” ABA Banking Journal said.