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ARTICLE · 02 SEPTEMBER 2026

FinCEN’s CTA Exemption: When An Exemption Becomes A Repeal

Fennemore Craig, P.C.
Explore more from Fennemore Craig, P.C.

The Corporate Transparency Act, or CTA, was Congress’s answer to a simple problem: it has long been easy to form a company in the United States without telling the government who really owns or controls it. That anonymity can help honest entrepreneurs protect privacy. It can also help criminals hide money, move funds, and avoid law enforcement.

United StatesGovernment, Public Sector
David A. McCarville
David A. McCarville

As of August 14, 2026, FinCEN has removed CTA beneficial ownership reporting requirements for U.S. companies and U.S. persons. That is good news for business owners who were worried about compliance. But the way FinCEN did it raises a larger legal question: can an agency effectively cancel the main part of a law Congress passed by calling the cancellation an exemption?

Why Congress Created the CTA

The Corporate Transparency Act, or CTA, was Congress’s answer to a simple problem: it has long been easy to form a company in the United States without telling the government who really owns or controls it. That anonymity can help honest entrepreneurs protect privacy. It can also help criminals hide money, move funds, and avoid law enforcement.

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