An Alabama federal district judge has declared the Corporate Transparency Act, a key anti-money laundering law passed in 2021, unconstitutional. The ruling came on March 1, 2024, stating that Congress exceeded its powers in enacting the law. The act, which aimed to enhance corporate transparency by requiring small business owners to report details on their ownership structures, was challenged by the National Small Business Association. The group argued that the reporting rule was burdensome, violated privacy and free-speech protections, and encroached on states’ regulatory powers. The judge’s decision is seen as a setback to the Biden administration’s efforts to combat financial crimes through increased corporate transparency. The ruling highlights the ongoing tension between privacy rights and the government’s pursuit of criminal activities, particularly in the context of global events like the conflict in Ukraine and efforts to sanction Russian oligarchs. Critics, including the FACT Coalition, view the decision as facilitating criminal activities by allowing the use of anonymous shell companies to conceal illicit funds. Small business reporting requirement found unconstitutional by Alabama federal judge | AP News