The U.S. Treasury Department announced it will not enforce penalties under the Corporate Transparency Act, which requires business entities to disclose their real beneficial owners.

This decision follows opposition from the Trump administration and legal challenges.

The Treasury stated it will focus enforcement on foreign reporting companies, aiming to support U.S. taxpayers and small businesses, Reuters has reported.

The act was designed to combat money laundering but has faced criticism for burdening low-risk entities.

Written by B.C. Begley