Clifford Chance

US federal appeals court reinstates nationwide injunction against enforcement of Corporate Transparency Act

December 30, 2024

On December 26, 2024, the Fifth Circuit Court of Appeals vacated a stay of an injunction against enforcement of the Corporate Transparency Act. The stay, issued only a few days earlier, had meant that in-scope legal entities that do not qualify for an exemption under the CTA ("reporting companies") were once again required to make beneficial ownership information report filings with Financial Crimes Enforcement Network.  Recognizing that some reporting companies would need additional time to comply with a January 1, 2025 deadline, FinCEN announced an extension through January 13, 2025. As a result of the Fifth Circuit's stay no longer being in effect, however, the nationwide preliminary injunction granted in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.) again enjoins enforcement of the CTA and FinCEN's implementing regulations. Our prior briefing regarding this injunction is available here.

Download PDF