U.S. Senator Mike Rounds and numerous congressional Republicans are urging a delay in implementing a reporting requirement for small businesses, part of the Corporate Transparency Act that went into effect on January 1.
The law mandates corporations, LLCs, and small businesses to disclose information about their ultimate owners or controllers to the Financial Crimes Enforcement Network (FinCEN) within a year.
While proponents argue that this enhances financial system integrity, Rounds and others request a one-year delay to educate stakeholders about the new obligations.
The law is hailed as a significant reform in financial transparency, targeting illicit actors who use anonymous shell companies for money laundering.
Critics argue that much of the required information is already available through state secretary of state offices.