Small businesses should not pay the price for the country's efforts to stem money laundering. #CTA #NotTheWay
FOR IMMEDIATE RELEASE July 18, 2023
Contact:
Molly Day
202-552-2904
mday@nsba.biz
NSBA Urges Lawmakers to Repeal the Corporate Transparency Act
WASHINGTON, D.C. – The National Small Business Association (NSBA) is urging lawmakers to do everything in their power to prevent the Corporate Transparency Act (CTA) from going into effect. Today, the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions is convening a hearing examining the CTA, “Potential Consequences of FinCEN’s Beneficial Ownership Rulemaking.” NSBA warns of the disastrous impact it will have on America’s smallest businesses.
Below is a statement from NSBA President and CEO Todd McCracken
“The CTA is a poorly thought out and heavy-handed federal mandate that will be a bureaucratic nightmare for small-business owners. If implemented, small businesses will be forced to spend millions of hours and billions of dollars on lawyers, record-keeping, tracking down information unrelated to the business instead of creating jobs and helping grow our economy.
“For years, this information has already been collected by banks under the Customer Due Diligence framework. The CTA is simply passing the buck from big banks—which have legions of staff that are already handling this kind of reporting requirement—to small businesses, which have limited resources to fight this kind of unfair burden.
“The law and subsequent regulations are painfully vague and ambiguous and could ensnare even the most benign of business advisors: a retired parent with expertise in accounting who counsels her son in opening a new business. Surely Congress didn’t intend this law to punish the smallest of businesses—however that’s exactly what this law will do.
“NSBA absolutely supports efforts to curtail money laundering, however the CTA is not the way. While we have filed a lawsuit against Treasury over the CTA, there is no guarantee the suit will be successful. It is not too late for Congress to help our nation’s job creators – I urge you to repeal or reform the CTA and protect small businesses from its insidious burden.”
Please visit www.NSBA.biz/CTA to learn more.
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., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.nsba.biz or @NSBAAdvocate.
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