The recent (March 1, 2024) US court ruling[i] in federal district court deemed the Corporate Transparency Act (“CTA”) unconstitutional.
FinCEN subsequently (March 4, 2024) stated it will not require compliance with the CTA for the plaintiffs in the case; the plaintiffs generally being members of the (US) National Small Business Association (“NSBA.
On March 11, 2024, FinCEN notified the court it will appeal the ruling. Therefore, FinCEN’s (and that of the US government) stance is that all reporting companies must continue to comply with the CTA and file Beneficial Owner Reports except for those protected by the district court ruling. For foreign (non-US) individuals, if they have substantial control over a US reporting company and the court ruling does not apply to that US reporting company (i.e. for example, if their US subsidiary is not a member of NSBA), then at present compliance with the CTA is still required.
[i] Nat’l Small Business United et. al., v. Yellen, Case No. 5:22-cv-1448 (N.D. Ala. 2024)
The case is coming out of the Federal District of Northern Alabama, part of the 11th Circuit.
