Injunction Temporarily Blocks Obligations Under Corporate Transparency Act ("CTA")
Posted Wednesday, January 8, 2025
On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated a nationwide preliminary injunction blocking the Financial Crimes Enforcement Network ("FinCEN") from enforcing the CTA. As a result, reporting companies are not required to file their beneficial ownership information with FinCEN while the preliminary injunction remains in effect.
The Fifth Circuit issued an expedited briefing schedule with briefing to be completed by February 28, 2025, and oral arguments on March 25, 2025. A decision will be issued thereafter.
Although the reporting deadlines are currently paused, reporting companies may wish to continue to review their obligations under the CTA, including identifying beneficial owners and gathering documents and information necessary for filings in order to be prepared if the filing requirements are reinstated. Reporting companies should continue to monitor for additional updates or guidance from FinCEN as a result of the ongoing litigation.