The Coming Deluge for Small Business

null By The Editorial BoardNov. 19, 2023 5:22 pm ETJournal Editorial Report:What was accomplished by applauding China's leader? Images: Zuma Press Composite: Mark KellySmall businesses are often hit hardest by regulation, and the latest federal dragnet is no exception. Under a statute aimed at reducing money laundering, millions of small businesses may soon be snared by onerous reporting requirements and fines for noncompliance.In 2021 Congress enacted the Corporate Transparency Act (CTA) in a broad effort to tighten money-laundering laws. The CTA assigns the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) with identifying shell companies used for illegal transactions and creating a registry of businesses with less than $5 million in annual sales and fewer than 20 employees.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8Continue reading your article witha WSJ subscriptionSubscribe NowAlready a subscriber? Sign InSpon

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Opinion Nov 20, 2023 Add to Reading List

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The Editorial Board

Nov. 19, 2023 5:22 pm ET

Journal Editorial Report:What was accomplished by applauding China's leader? Images: Zuma Press Composite: Mark Kelly

Small businesses are often hit hardest by regulation, and the latest federal dragnet is no exception. Under a statute aimed at reducing money laundering, millions of small businesses may soon be snared by onerous reporting requirements and fines for noncompliance.

In 2021 Congress enacted the Corporate Transparency Act (CTA) in a broad effort to tighten money-laundering laws. The CTA assigns the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) with identifying shell companies used for illegal transactions and creating a registry of businesses with less than $5 million in annual sales and fewer than 20 employees.