US Seeks to Revive Corporate Transparency Law Ruled an Overreach

US officials pushed an appeals court to resurrect an anti-money laundering statute after it was invalidated for exceeding Congress’ power to regulate commerce.

The Corporate Transparency Act would require businesses report their “beneficial ownership” to the Treasury Department, with the goal of cracking down on money laundering and tax evasion using anonymous shell companies.

Judge Liles C. Burke, of the US District Court for the Northern District of Alabama, held that the CTA is unconstitutional because it doesn’t regulate commercial or economic activity. Rather, it impermissibly regulates the act of incorporation, without respect to whether the entity engages in commerce. ...