MMM’s Lili Martin-Mashburn was quoted in an article published by Reuters regarding FinCEN’s March 2 announcement indicating a pause on enforcement and how Treasury’s latest move creates a potential loophole for non-U.S. parties.
In light of recent developments surrounding the Corporate Transparency Act (CTA), MMM partner Lili Martin-Mashburn shares insights on the Treasury Department’s latest actions. While she sees the delay in enforcement as a reasonable step, she raises concerns about the potential loophole created by narrowing the rule to foreign entities. Martin-Mashburn warns that this shift could unintentionally position the U.S. as a haven for illicit financial activity, undermining efforts to combat money laundering and other financial crimes.
She adds, “until the CTA is repealed or amended, the Treasury’s recent announcement offers limited comfort or clarity.” Despite these concerns, she notes that the underlying statute of the CTA remains in effect, meaning non-compliance could still trigger liability for entities.
Read the full article here.
