Trump Administration Weakens Corporate Transparency Act, Raising Money-Laundering Concerns

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued a final rule that permanently exempts U.S. individuals and companies from the Corporate Transparency Act’s (CTA) requirement to disclose the true owners of opaque entities. The rule also directs the agency to delete existing beneficial-ownership records on U.S. persons, gives banks a pass on verifying owners when opening new accounts, and postpones an anti-money-laundering rule for investment advisers until 2028.

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The CTA, enacted in 2020, was a bipartisan effort championed by Sen. Marco Rubio (R-FL), Sen. Ron Wyden (D-OR) and Sen. Sheldon Whitehouse (D-RI). The law required private U.S. businesses to report the individuals who ultimately control them, creating a tool for law-enforcement agencies to trace illicit financial flows through shell companies.

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• A Government Accountability Office report found that more than 99 % of entities previously subject to CTA reporting are now exempt.

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• The Organized Crime and Corruption Reporting Project estimates at least US $2.3 billion was laundered through U.S. real estate over the past five years, with over 80 % of cases involving foreign money and anonymous corporate structures.

Alternet

• Reuters identified 63 Russian-linked buyers who purchased $98.4 million of property from the Trump Organization, a third of which was held by opaque LLCs.

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• The Federal Election Commission’s website notes it cannot function because it lacks a quorum, limiting its ability to enforce rules against foreign campaign contributions.

Common Dreams

• Sen. Andy Kim (D-NJ) warned, “Trump is making it easier for cartels, criminals, and US adversaries to abuse our financial system and harm Americans.”

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• **Sen.

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• Sen. Elizabeth Warren (D-MA) warned the rollback would hamper efforts to stop Chinese money-laundering networks, a Venezuelan cryptocurrency scheme involving over $1 billion, and other illicit flows.

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• **Rep.

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• “Trump is making it easier for cartels, criminals, and US adversaries to abuse our financial system and harm Americans,” — Sen. Andy Kim

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The CTA exemption is now permanent, and the FEC remains without a quorum, leaving election-finance enforcement weakened. No further legislative or regulatory actions have been announced to restore the reporting requirements.

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