The Fifth Circuit lifted a nationwide injunction that blocked enforcement of the Corporate Transparency Act, finding that the federal government is likely to prevail in a constitutional challenge to the disclosure law.
The Monday panel ruling reversed a recent order by a Texas federal judge, who had preliminarily blocked enforcement by the Treasury’s Financial Crimes Enforcement Network weeks ahead of an important filing deadline.
“The government has made a strong showing that it is likely to succeed on the merits in defending CTA’s constitutionality,” the panel said.
Congress passed the CTA as an anti-money laundering measure, requiring that US entities ...