Treasury Halts Enforcement of Small Business Ownership Registration Rule

The U.S. Treasury Department has announced it will not enforce a Biden-era rule aimed at combating money laundering and shell company formation, which required small businesses to register their beneficial ownership information. This decision, praised by former President Donald Trump, comes amidst ongoing legal challenges and criticisms regarding the database's privacy implications. Despite the rule remaining technically in effect, Treasury stated it would not impose penalties for non-compliance. The rule was designed to create a database containing personal information on the owners of over 32 million U.S. businesses, but faced backlash for being burdensome and invasive. Officials had previously estimated the compliance cost to be around $85 per business, emphasizing the potential benefits for law enforcement. The announcement reflects a significant shift in regulatory approach concerning small business oversight and anti-money laundering efforts.