THE US Treasury Department announced that it would not apply a time of Biden Small business rule intended to curb money laundering and the training of companies.
In an announcement on Sunday evening, Treasury said in a press release that it would not impose penalties now or in the future if companies would not register the beneficiary of the beneficial information database of the agency which was created during the Biden administration.
Despite the efforts of small businesses to cancel the rule before the courts, it remains in force.
On Sunday, President Donald Trump on his truth about social media praised the suspension of the application of the rule and said that the database was “scandalous and invasive”.
“This Biden rule was an absolute disaster for small businesses nationwide,” he said. “The economic threat of the Boi reports will no longer be.”
In September 2022, the Treasury Department began to create rules to create a database that would contain personal information on owners of at least 32 million US companies in the context of an effort to combat business training and illegal finance.
The rule required most American companies with less than 20 employees to record their business owners with the government on January 1, 2024. Small businesses are targeted because bus companies, often used to hide assets obtained illegally, tend to have few employees.
Treasury officials, including former Treasury Secretary, Janet Yellen, said the regulatory burden would be small, costing around $ 85 per company, but would offer advantages to law enforcement officials seeking to find launders and other criminals. She said in January 2024 that more than 100,000 companies had filed beneficial information on cash.
The rule and its legislative authority – Corporate Transparency Act, an anti -money laundering statue adopted in 2021 – have been mired in disputes. In 2022, a small business lobbying group continued to block the Treasury Department requirement that dozens of millions of small businesses register with the government. On February 27, the financial network and the Treasury law application of the law said that it would not take application measures against companies that do not file the beneficiary ownership data with the agency.
Business managers cite problems of confidentiality and security concerning the database and say that it is duplicity to other government agencies which maintain corporate databases.
“This is a victory for common sense,” the American secretary of the Treasury Scott Bessent said on Sunday. “Today’s action is part of President Trump’s daring agenda to release American prosperity by reinstating in heavy regulations, especially for small businesses that are the backbone of the American economy.”