“The federal government had no choice but to appeal. We are glad that it did...."
FOR IMMEDIATE RELEASE
Tuesday, March 12, 2024
CONTACT | Molly Day
202-552-2904 mday@nsba.biz
Washington, D.C. – The U.S. Department of Justice and Treasury Department's Financial Crimes Enforcement Network has formally appealed the U.S. District Court of Northern Alabama’s ruling in favor of NSBA’s lawsuit to strike down the Corporate Transparency Act (CTA).
Below is a statement from NSBA President and CEO Todd McCracken.
“The federal government had no choice but to appeal. We are glad that it did, so that the Eleventh Circuit, which also has jurisdiction over Georgia and Florida, can now affirm the ruling we obtained from the Northern District of Alabama that the CTA is unconstitutional.
“Not only does the CTA fall far short of its laudable goal of stemming money laundering, it places the onus for policing illicit business on law-abiding small businesses and poses a significant risk when it comes to data security.
“If Congress does not repeal the CTA, eventually the Supreme Court will need to address this issue as well and strike down the statute for the entire United States.
“Unfortunately, until that happens, FinCEN has declared “full speed ahead” on compliance for all but the plaintiffs in the case. When coupled with the fact that FinCEN put virtually no effort into informing the public about the obligations of small businesses under the CTA, FinCEN’s unwillingness to suspend enforcement shows a clear disregard of America’s small-business owners.
“FinCEN should immediately reverse course and suspend enforcement of the CTA for all until these issues are finally decided.”
Please click here to read the appeal.
Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate
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