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The Biden administration requested that the Supreme Court reinstate the Federal anti-money laundering law known as the Corporate Transparency Act (CTA). A federal judge’s injunction preventing the statute from being implemented is temporarily overturned by this action, which is granted through an emergency stay. The majority opinion was dissented from by Justice Ketanji Brown Jackson.
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Enacted in early 2021 as part of the annual defense bill, the CTA mandates millions of small business entities to disclose personal details about their owners, including dates of birth and addresses, to the Financial Crimes Enforcement Network. The law aims to enhance efforts against financial crimes such as money laundering.
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This ruling allows the law’s implementation to proceed while the legal challenge continues in the 5th U.S. Circuit Court of Appeals. Business groups and anti-regulatory advocates have expressed concerns, arguing for a delay in the looming compliance deadline.
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Justice Jackson, the court’s sole dissenting voice, contended that the government had failed to justify the urgency of immediate enforcement. She highlighted that the initial implementation timeline was set nearly four years after the law’s passage, suggesting no new evidence of harm if further delays were allowed.
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In contrast, the Justice Department defended the law, arguing that halting its implementation would impede Congress’s intent, compromise national security, and weaken the nation’s stance on global anti-money laundering efforts. Former Solicitor General Elizabeth Prelogar emphasized the need to proceed without delay, stating that delays could undermine U.S. leadership in combating financial crimes.
Justice Neil Gorsuch, in a concurring opinion, expressed interest in addressing the broader issue of federal district courts issuing nationwide injunctions. Such injunctions have become a contentious tool in challenging regulations from administrations of both political parties.
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The original lawsuit, brought by small businesses, including a firearms dealer and the Libertarian Party of Mississippi, argued that the CTA exceeds Congress’s constitutional authority. As the case continues in the lower courts, the debate over balancing regulatory oversight with constitutional limits remains pivotal.
Money Laundering, ah?
Planned Parenthood receives government assistance around $600M/Y, and they in turn kick $45M back to the Democrats in campaign contributions. How about prohibiting organizations that receive government funds from donating to political campaigns.?