Davis Polk partner Dan Stipano shared his thoughts with MoneyLaundering.com on a recent Alabama district court ruling that declared the Corporate Transparency Act (CTA) unconstitutional. The CTA aims to combat illicit activity including tax fraud, money laundering and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the U.S. market.

“In all likelihood, this decision will be overturned but, in any event, it is a lower court decision that is only applicable in the Northern District of Alabama,” Dan explained.

“Alabama Federal Judge Declares Corporate Transparency Act Unconstitutional,” MoneyLaundering.com (March 2, 2024)

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