The CTA is not the way to stem money laundering.
FOR IMMEDIATE RELEASE
Tuesday, April 30, 2024
Contact:
Molly Day
202-552-2904
Washington, D.C. – On April 30, 2024, National Small Business Association member Timothy Opsitnick, owner of Opsitnick, LLC and On Call Cyber, LTD in Ohio and Executive Vice President and General Counsel of TCDI in North Carolina, testified before the House Small Business Committee on the major burden posed by the Corporate Transparency Act (CTA). NSBA has been leading the charge against the CTA since its inception, and recently won a judgement from the U.S. District Court of the Northern District of Alabama that cited the CTA as unconstitutional.
In his testimony, Opsitnick illustrated the burden CTA poses, “A first-time entrepreneur looking to open a coffee shop, for example, must push through these 102 pages of explanatory language to understand their reporting burden under this statute. Given permitting, licensure, construction and other delays, it’s entirely possible that our theoretical aspiring barista would have to read, understand, and act on over 100 pages of guidance before they serve a single cup to a customer; all under the threat of criminal sanctions.”
Throughout the hearing, Members of Congress heard from NSBA’s Opsitnick the various problems with the CTA—not the least of which is that throughout his very active interactions in various small-business organizations, most small-businesses have no idea about the CTA.
Opsitnick went on to highlight the massive data privacy concerns that exist with the CTA and elaborated on the chilling effect this rule will have on investment, mentorship and business growth.
“According to an NSBA survey, the average cost to remedy a small-business data breach is $15,297,” stated Opsitnick. “However part of my professional practice includes cybersecurity and data privacy matters and I’ve seen small middle-market companies face costs over $100,000 in data breach scenarios, whether due to ransomware, attorneys’ fees, security professionals, or simply reputational damage.”
NSBA will continue to seek legal recourse to overturn the CTA for all small businesses in the U.S. and is calling on lawmakers to pass legislation repealing the CTA.
Please click here to watch the hearing and here to read the full testimony.
Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.
