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[QUOTE="Munyaradzi Mafaro, post: 78361, member: 636"]
A federal appeals court just revived a law forcing companies to reveal their real owners. The Corporate Transparency Act, which aims to fight money laundering, had been struck down by a lower court. A panel from the Eleventh Circuit ruled the law properly regulates economic activity impacting interstate commerce.

The decision reverses a finding that the law unconstitutionally overreached by targeting corporate formation itself, which the lower court saw as non-economic. The appellate judges countered that business entities are inherently commercial, created for economic purposes. They also rejected a separate challenge claiming the reporting mandate violated Fourth Amendment protections against unreasonable searches.

Congress passed the act to address shell companies used for financial crimes, citing billions in annual costs. It requires disclosure of individuals with significant control or ownership stakes. While this court upholds the law's framework, recent regulations from the Treasury Department have significantly narrowed which entities must actually comply, limiting its practical scope.
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