NEW YORK — For the time being, small businesses do not have to comply with the registration requirements set forth by the Financial Crimes Enforcement Network (FinCEN).

This registration comes as part of the Corporate Transparency Act (CTA), a significant piece of legislation aimed at combating money laundering, which was enacted in 2021. Under this law, it is estimated that approximately 32.6 million small business owners or co-owners must provide personal details to FinCEN, including a photo ID and their residential address.

The primary objective of the CTA is to reduce the prevalence of shell companies and combat financial crimes. However, representatives for small businesses are voicing concerns that the obligations associated with reporting are excessively burdensome.

The implementation of the registration has faced uncertainty for quite some time. Recently, the Supreme Court removed an injunction related to challenges concerning the law. Nonetheless, on the following day, FinCEN clarified that another ongoing legal case has resulted in a different injunction, rendering registration still a voluntary process.

In a statement on its website, FinCEN mentioned, “Due to a recent federal court order, reporting companies are currently not obligated to submit beneficial ownership information to FinCEN and will not face any penalties for failing to do so while this order is active.”

The agency also indicated that businesses still have the option to voluntarily file their beneficial ownership reports, should they choose to do so.

Even if mandatory registration eventually comes into effect, it remains uncertain how vigorously the Trump administration would enforce such requirements. This is especially pertinent given the opposition voiced by Republican states, lawmakers, and conservative business groups against the registration mandate.