ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Newsbytes

DOJ asks Supreme Court to weigh in on BOI injunction

January 1, 2025
Reading Time: 2 mins read
U.S. Supreme Court vacates Ninth Circuit preemption decision

The back-and-forth legal battle over enforcement of the Corporate Transparency Act and its requirement for businesses to report their beneficial ownership information continued into the final days of 2024. On Dec. 31, the U.S. Department of Justice fired the latest volley, with an emergency application with the Supreme Court for a stay of the injunction originally issued by the District Court for the Eastern District of Texas.

On Dec. 23, the Fifth Circuit Court of Appeals lifted a nationwide injunction issued by the district court judge earlier in December in a Texas lawsuit challenging the CTA, which requires covered businesses to report their beneficial ownership information to Treasury’s Financial Crimes Enforcement Network. Three days later, on Dec. 26, “in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments,” the panel of Fifth Circuit judges that will consider the merits of the government’s appeal of the preliminary injunction vacated that decision and once again enjoined enforcement of the reporting rule and CTA, putting the reporting requirement on hold once again.

DOJ’s New Year’s Eve filing asked the high court to stay the district court’s injunction, reasoning that the government “is likely to succeed on the merits of respondents’ claim” and that CTA’s reporting requirements are important to the federal response to money laundering, tax fraud and the financing of terrorism, falling “comfortably within Congress’s authority under the Commerce Clause to regulate economic activities that substantially affect interstate commerce.”

In the alternative, DOJ asked the court to narrow the “district court’s vastly overbroad injunction,.” limiting it only to plaintiffs in this case. If the Supreme Court decides to act, its decision could affect lower courts’ ability to issue nationwide injunctions affecting non-plaintiffs.

The litigation is separate from another matter currently pending before the Eleventh Circuit. Independent from this nationwide injunction, also exempt from any filing deadlines are members of the National Small Business Association, in which an injunction applying to its members in a separate lawsuit remains in place. As FinCEN notes on its website, several other federal courts are also considering CTA challenges, including the District of Oregon, the Western District of Michigan and the Eastern District of Virginia.

According to recent poll data from Wolters Kluwer, as of mid-November, only about a quarter of the estimated 32.5 million covered businesses had registered. Thirty-seven percent of firms were waiting until closer to the deadline and 12% said they had insufficient resources to do the filing. Meanwhile, 9% of businesses believed they were not covered by the rule, and 32% were unsure whether the rule applied to them. FinCEN reported that as of Dec. 2, nearly 10 million businesses had reported their beneficial ownership information to FinCEN.

Despite the government’s appeal to the Supreme Court, at this time, reporting companies are still not required to report.

ADVERTISEMENT
Tags: Anti-money launderingBeneficial ownershipFinCENTerrorism financing
ShareTweetPin

Related Posts

Senate bill would mandate discount window testing, modernization

FOMC holds rates steady

Economy
July 30, 2025

The FOMC announced that it will hold the target range for the federal funds rate at 4.25%-4.5%. However, Governors Michelle Bowman and Christopher Waller voted against the policy, instead preferring to lower the target range by 0.25 percent.

Federal court finds CFPB funding structure constitutional

Court pauses lawsuit over Section 1033 data sharing rule

Compliance and Risk
July 30, 2025

A federal court granted a stay in a lawsuit challenging the CFPB’s financial data sharing rule after the bureau requested time to work on a replacement, but it left in place the deadlines for complying with the current...

ABA Foundation seeks donations to support Mississippi tornado relief efforts

FDIC issues regulatory relief guidance for New Mexico, West Virginia

Compliance and Risk
July 30, 2025

The FDIC released guidance with steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of New Mexico and West Virginia recently affected by severe storms and flooding.

NAR: Pending home sales slipped in May

NAR: Pending home sales declined in June

Economy
July 30, 2025

Pending home sales fell 0.8% in June from the prior month, the National Association of Realtors said. Year over year, pending transactions were down 2.8%.

Report: More states creating restrictions on crypto ATMs

Report: More states creating restrictions on crypto ATMs

Compliance and Risk
July 30, 2025

A growing number of states have enacted or are considering new regulations on cryptocurrency ATMs to crack down on fraud involving the machines, according to AARP.

ABA Data Bank: U.S. economic growth slower than initially thought

Second quarter 2025 GDP (advanced estimate) increased 3%

Economy
July 30, 2025

Real gross domestic product (GDP) increased at an annual rate of 3% in the second quarter of 2025, according to the advanced estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP decreased...

NEWSBYTES

FOMC holds rates steady

July 30, 2025

Court pauses lawsuit over Section 1033 data sharing rule

July 30, 2025

FDIC issues regulatory relief guidance for New Mexico, West Virginia

July 30, 2025

SPONSORED CONTENT

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

July 1, 2025
AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025

PODCASTS

Demographic trends shaping the U.S. banking outlook

July 30, 2025

Podcast: How institutional banking helps build one regional bank’s strategy

July 24, 2025

The future of careers in risk and compliance

July 17, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.