Earnings Mastery
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
  • Politics
  • Business
  • Investing
  • World
No Result
View All Result
Earnings Mastery
No Result
View All Result
Home Business

Treasury ends enforcement of business ownership database meant to stop shell company formation

March 5, 2025
in Business
Treasury ends enforcement of business ownership database meant to stop shell company formation
0
SHARES
7
VIEWS
Share on FacebookShare on Twitter

The U.S. Treasury Department announced it will not enforce a Biden-era small business rule intended to curb money laundering and shell company formation.

In a Sunday evening announcement, Treasury said in a news release that it will not impose penalties now or in the future if companies fail to register for the agency’s beneficial ownership information database that was created during the Biden administration.

Despite efforts by small businesses to undo the rule in the courts, it remains in effect.

On Sunday, President Donald Trump on his Truth Social media site praised the suspension of enforcement of the rule and said the database is “outrageous and invasive.”

“This Biden rule has been an absolute disaster for Small Businesses Nationwide,” he said. “The economic menace of BOI reporting will soon be no more.”

In September 2022, the Treasury Department started rulemaking to create a database that would contain personal information on the owners of at least 32 million U.S. businesses as part of an effort to combat shell company formations and illicit finance.

The rule required most American businesses with fewer than 20 employees to register their business owners with the government as of Jan. 1, 2024. Small businesses are targeted because shell companies, often used to hide illegally obtained assets, tend to have few employees.

Treasury officials, including former Treasury Secretary Janet Yellen, said the regulatory burden would be small, costing about $85 per business, but would offer benefits to law enforcement officials seeking to track down money launderers and other criminals. She said in January 2024 that more than 100,000 businesses had filed beneficial ownership information with Treasury.

The rule and its legislative authority — the Corporate Transparency Act, an anti-money laundering statue passed in 2021 — have been mired in litigation. In 2022, a small business lobbying group sued to block the Treasury Department’s requirement that tens of millions of small businesses register with the government. On Feb. 27, Treasury’s Financial Crimes and Enforcement Network said it would not take enforcement actions against companies that do not file beneficial ownership data with the agency.

Business leaders cite privacy and security concerns about the database and say it is duplicitous to other government agencies that maintain corporate databases.

“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent on Sunday. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”

This post appeared first on NBC NEWS

Previous Post

In wake of L.A. wildfires, a diverse small business community looks to rebuild

Next Post

Kroger chairman and CEO resigns following investigation into personal conduct

Next Post
Kroger chairman and CEO resigns following investigation into personal conduct

Kroger chairman and CEO resigns following investigation into personal conduct

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    Top 4 Dow Jones stocks to buy and hold for the next bull run

    May 16, 2025
    Asian markets open: Nikkei, Hang Seng fall amid Alibaba’s 4% drop; Sensex slips over 200 pts

    Asian markets open: Nikkei, Hang Seng fall amid Alibaba’s 4% drop; Sensex slips over 200 pts

    May 16, 2025
    Saudi Arabia’s $600B US bet: can high oil prices and Trump’s low gas wishes coexist?

    Saudi Arabia’s $600B US bet: can high oil prices and Trump’s low gas wishes coexist?

    May 16, 2025
    Japan sees record fund inflows as Trump’s tariff threats drive investors from US markets

    Japan sees record fund inflows as Trump’s tariff threats drive investors from US markets

    May 16, 2025
    Europe markets open: STOXX 600 rises 0.4% on trade hopes, ECB signals rate peak

    Europe markets open: STOXX 600 rises 0.4% on trade hopes, ECB signals rate peak

    May 16, 2025
    No emails, no early meetings: Airbnb’s Chesky on why CEOs don’t need to be ‘miserable’

    No emails, no early meetings: Airbnb’s Chesky on why CEOs don’t need to be ‘miserable’

    May 16, 2025

    Disclaimer: EarningsMastery.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Popular

    Asia markets on Friday: Hang Seng, Nifty end in green, Nikkei dips sharply

    Asia markets on Friday: Hang Seng, Nifty end in green, Nikkei dips sharply

    April 12, 2025

    Latest

    Top 4 Dow Jones stocks to buy and hold for the next bull run

    May 16, 2025
    Asian markets open: Nikkei, Hang Seng fall amid Alibaba’s 4% drop; Sensex slips over 200 pts

    Asian markets open: Nikkei, Hang Seng fall amid Alibaba’s 4% drop; Sensex slips over 200 pts

    May 16, 2025
    Saudi Arabia’s $600B US bet: can high oil prices and Trump’s low gas wishes coexist?

    Saudi Arabia’s $600B US bet: can high oil prices and Trump’s low gas wishes coexist?

    May 16, 2025
    • About us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 earningsmastery.com | All Rights Reserved

    No Result
    View All Result
    • Politics
    • Business
    • Investing
    • World

    Copyright © 2025 earningsmastery.com | All Rights Reserved