March 13, 2025
Washington, D.C. – Global Financial Integrity (GFI) expresses its deep concern regarding the recent decision by the U.S. Department of the Treasury to suspend enforcement of the Corporate Transparency Act (CTA) against U.S. citizens and domestic reporting companies. While we acknowledge the importance of regulatory efficiency and stakeholder engagement, this decision represents a significant step backward in the global fight against financial crime, corruption, and illicit financial flows.
The CTA, which was passed with broad bipartisan support as part of the National Defense Authorization Act (NDAA), was designed to close a longstanding loophole that has allowed anonymous companies to facilitate money laundering, tax evasion, human trafficking, and other illicit activities. The law’s beneficial ownership reporting requirements provide essential transparency that strengthens national security, safeguards financial integrity, and upholds the United States’ leadership in combating financial crimes.
Suspending the enforcement of the CTA weakens efforts to hold bad actors accountable and risks undermining years of progress in financial transparency and corporate accountability. It also signals to both domestic and international stakeholders that the United States is retreating from its commitment to combating the misuse of legal entities for illicit purposes. The financial system relies on clear, enforceable regulations to prevent the exploitation of anonymous corporate structures, and any delay or rollback of enforcement threatens the effectiveness of these measures.
While we appreciate the Treasury Department’s intent to reassess implementation strategies, we urge the administration to ensure that this review process does not result in further delays or weaken the core objectives of the CTA. Financial secrecy enables corruption, fuels transnational crime, and erodes public trust in governance. Now, more than ever, strong and decisive action is needed to prevent illicit actors from exploiting vulnerabilities in the corporate registration system.
GFI remains committed to working alongside policymakers, regulators, and civil society to advance transparency initiatives that protect the integrity of the financial system. We strongly encourage the Treasury Department to reaffirm its commitment to implementing and enforcing the CTA in a timely and effective manner.