Public Policy

The ALA Public Policy program works with international, federal and state/provencial governmental agencies, environmental groups, as well as standard and code organizations that influence how lighting products are designed, manufactured and sold.




April 29, 2024
The Latest on the Treasury's Corporate Transparency Act
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April ALA Public Policy Updates
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The Latest on the Treasury's Corporate Transparency Act

ALA Member Compliance Required

Monday, April 29, 2024/Categories: News, Public Policy, Industry News, Member News, ALA News

Here is an update on the implementation of the Corporate Transparency Act (CTA) by the Department of Treasury’s (Treasury) Financial Crimes Enforcement Network (FinCEN).

Last year, ALA informed members of a new federal requirement for businesses with fewer than 20 employees to disclose owners’ information to FinCEN. The CTA became law under the guise of needing to increase corporate transparency. Over 30 million businesses are expected to be impacted by the rule. Failure to comply can result in $10,000 in fines and up to two years in prison.

The rule was slated to take effect Jan. 1, 2024, but several significant developments have occurred since ALA last reported on the matter.

- December 2023, the United States House of Representatives, in a near unanimous vote, passed the Protect Small Business and Prevent Illicit Financial Activity Act, a bill to delay several of the deadlines in the CTA.

- At the same time, 80 Senators and Representatives sent a letter to FinCEN urging an overall one-year delay for all reporting requirements.

- Also in December, the National Small Business Association (NSBA) launched a legal challenge against the CTA and Treasury.

- Jan. 3, 2024, Treasury opened the beneficial ownership portal, putting CTA officially in effect.

- Mar. 2, 2024, a Federal District Court judge ruled the CTA unconstitutional, however FinCEN said they will still enforce the CTA on all non-NSBA members. The Treasury appealed the ruling to the Eleventh Circuit.

- March 2024, additional legal cases filed nationwide.

- April 30, 2024 House Committee on Small Business holds a full-committee hearing, titled “Under the Microscope: Examining FinCEN’s Implementation of the Corporate Transparency Act."

- April/May 2024, Congress on the verge of introducing a CTA repeal bill.

Until the legal cases are resolved or Congress takes action, ALA member companies, that meet the necessary qualifications set forth in CTA, should comply. The consequences for not doing so are not worth the risk.


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