Back in November 2022, a lawsuit was filed in the United States by the National Small Business Association. Thus, they made a request to block the requirement to register beneficiaries for small businesses. The law has already come into force since the beginning of this year and is designed to prevent criminal abuse by anonymous shell companies.
The petitioners argue that the beneficiary disclosure rule violates the Constitution, is burdensome on small firms, violates privacy and free speech protections, and infringes on states’ business management powers.
A few days ago, the court ruled that the Corporate Transparency Act was unconstitutional and that Congress had exceeded its authority, making the resulting requirements illegal.