The U.S. Treasury Department announced on Sunday that it will not enforce an anti-money laundering law requiring millions of business entities to disclose their ultimate beneficial owners.
The Trump administration has opposed the Biden-era Corporate Transparency Act, arguing that it imposes an undue burden on low-risk businesses. The legislation has also faced numerous legal challenges since its introduction.
In an official statement, the Treasury Department clarified that it would refrain from imposing penalties under this act on U.S. citizens or domestic reporting companies.
“Treasury is taking this step to support hardworking American taxpayers and small businesses,” the department stated. It also indicated plans to revise the rule so that its enforcement would be limited to foreign reporting companies rather than domestic ones.
Advocates of the measure maintain that the law was designed to curb the increasing use of the United States as a financial haven for criminals engaged in money laundering.
Kroger Files Countersuit Against Albertsons Over Failed $25 Billion Merger
In a separate corporate legal battle, U.S. grocery retailer Kroger has filed a countersuit against competitor Albertsons, escalating tensions following the collapse of their proposed $25 billion merger.
Albertsons initially pursued the merger with Kroger, but the deal was blocked by regulatory authorities over concerns that it would reduce competition and drive up prices for consumers. After the agreement was officially terminated in December, Albertsons sued Kroger, accusing it of breaching contractual obligations and contributing to the deal’s failure.
The merger’s collapse marked the end of a two-year effort by both companies to consolidate their operations. However, regulators consistently raised concerns that the deal would create an unfair advantage, leading to fewer choices and higher grocery prices for shoppers.
