The Trump administration will not enforce reporting requirements of the 2021 Corporate Transparency Act, which was intended to crack down on money laundering through anonymous shell companies. The Treasury Department's decision effectively scales back federal scrutiny of U.S. shell company ownership, a move that undercuts a key anti-corruption and financial transparency measure passed with bipartisan support.

The 2021 law required millions of small businesses to disclose their beneficial owners to the Treasury's Financial Crimes Enforcement Network (FinCEN). However, the administration now argues that the compliance burden outweighs the benefits, especially for small businesses. Critics warn this reversal will make it easier for criminals, including foreign oligarchs and drug traffickers, to hide illicit funds behind opaque corporate structures.

The decision aligns with broader regulatory rollbacks under the Trump administration and has drawn sharp criticism from transparency advocates. Supporters of the original law argue that without enforcement, the U.S. will remain a haven for anonymous shell companies, undermining global efforts to combat money laundering and terrorist financing.