XML Financial Group Blog

Corporate Transparency Act’s Future in Question After Alabama Ruling

Written by XML Financial Group | Apr 16, 2024 2:00:00 PM

A United States federal judge in Alabama has ruled that the Corporate Transparency Act is unconstitutional. The CTA was enacted by a broad bipartisan vote in 2020 as part of an initiative to prevent criminals from using shell companies to cover their illegal activities. The U.S. government is likely to appeal but will adhere to the temporary injunction as it mulls its next moves.

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