A group of industry associations has signed on to a letter supporting efforts to overturn requirements by the Treasury Department’s Financial Crimes Enforcement Network that would require business owners to provide and keep current a number of personal details.
The effort is specifically focused on challenging the constitutionality of the Corporate Transparency Act of 2020, which was enacted as part H.R. 6395, the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021.
The Irrigation Association, Fairfax, Virginia, National Association of Wholesaler-Distributors, Washington, D.C., and 41 other industry associations signed on to the letter.
“The rules represent an unreasonable burden on small businesses,” says Nathan Bowen, Irrigation Association advocacy director. “They inject the federal government into areas of state responsibility. The goals of the legislation are noble, but there are more appropriate and effective mechanisms for stemming financial crimes.”
The letter, titled “Trade Association Statement Supporting NSBA v. Janet Yellen,” was published in December.
“The Corporate Transparency Act represents an unprecedented attempt by the federal government to gather the personal information of millions of law-abiding citizens and residents who own or control small businesses and other covered entities, disproportionately targeting our members and subjecting them to increased paperwork, privacy risks, and potentially devasting fines and prison terms,” reads the letter.
The letter goes on to state that the wording of the act is problematic and unconstitutional due to the fact that it allows for the collection of personal information for law enforcement purposes without suspicion of wrongdoing.
“This law is poorly considered and unconstitutional. We look forward to the courts striking down this ill-advised law,” concludes the letter.
The full message can be viewed here.
