The U.S. Department of Treasury is scrapping a requirement for U.S. small businesses to report information about their owners to the federal government. 

The Corporate Transparency Act, passed in 2021, required millions of businesses to report basic information on their “beneficial owners.” By identifying who owned certain entities, lawmakers sought to curb criminal activity and illicit finance conducted through opaque shell companies.

This change may impact efforts to combat money laundering and other illicit activities through anonymous shell companies. Transparency measures are crucial for preventing financial crimes.