To:  Clients and Friends of Fox Swibel Levin & Carroll LLP

Reporting companies are still not required to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN) – for now.

Last week, the Supreme Court lifted an injunction related to a Fifth Circuit case we have been reporting on, Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland. However, FinCEN clarified shortly after the Supreme Court ruling that due to a separate court case with another injunction, registration is still voluntary. The injunction in that case, Smith v. U.S. Department of the Treasury, was issued on January 7, 2025 in another Texas district court and remains in effect. However, the Supreme Court could similarly lift the injunction in Smith if the government requests that relief.

It is unclear whether the government will change positions and decline to enforce the CTA or take further steps to defend it under the new Trump administration. At the moment, FinCEN has made clear in its update that “reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force.”

Fox Swibel will continue to monitor updates on CTA enforcement. If you have any questions about the CTA and this development, please contact David Morris ([email protected]) or Marcus Lind-Martinez ([email protected]). Thank you.

This article contains material of general interest and should not be construed as legal advice or a legal opinion on any specific facts or circumstances.  Under applicable rules of professional conduct, this content may be regarded as attorney advertising.