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03/03/2025

Treasury Ends Enforcement of Business Ownership Database Related to Fraud

The database's aim was to curb money laundering, shell company formations

The U.S. Treasury Department announced it will not enforce a Biden-era small business rule intended to curb money laundering and shell company formation.

In a Sunday evening announcement, Treasury said in a news release that it will not impose penalties now or in the future if companies fail to register for the agency’s beneficial ownership information database that was created during the Biden administration.

Despite efforts by small businesses to undue the rule in the courts, it remains in effect.

Please select this link to read the complete article from Reuters.

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