Yesterday, AFSA joined other trade groups in encouraging the delay of the Corporate Transparency Act’s (CTA) year-end compliance deadline for existing entities. The letter highlights the vagaries of the reporting requirements, as well as the legal challenges to the CTA which leaves small businesses in limbo. If enacted, this provision would provide much-needed relief to the Main Street business community, enable federal regulators to continue their education and outreach efforts, and allow various legal challenges to make their way through the courts. The letter highlights the vagaries of the reporting requirements, as well as the legal challenges to the CTA which leaves small businesses in limbo.
The CTA mandates that companies disclose and regularly update detailed beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). It subjects covered entities and their “beneficial owners” to vague and complex reporting requirements while putting their sensitive personal information at risk. FinCEN estimates that more than 32 million such entities will be affected by the new law just this year, with an additional 6 million each subsequent year as new businesses are formed.
Yet as of December 1, 2024 – just one month before a year-end deadline – FinCEN has received less than 30 percent of the required filings, highlighting the stark education gap when it comes to the compliance obligations mandated by the CTA. Adding to the confusion are the myriad legal challenges that have been filed throughout the country, and which stand at various stages of the legal process. Notably, a nationwide injunction against the CTA was recently appealed and will be heard by the Fifth Circuit, while an Alabama court ruling that found the CTA unconstitutional is pending appeal in the Eleventh Circuit.
Small businesses find themselves in a precarious position: they are currently under no obligation to file, but a single ruling could reverse that dynamic, leaving them with just days to comply with this burdensome and costly statute. A one-year delay would give time to address these challenges.
A Push for a Delay in CTA
Dec 20, 2024
Yesterday, AFSA joined other trade groups in encouraging the delay of the Corporate Transparency Act’s (CTA) year-end compliance deadline for existing entities. The letter highlights the vagaries of the reporting requirements, as well… Read the rest
AFSA’s Latest C3 Index Released
Dec 19, 2024
The last few years have been challenging for consumers and providers of consumer credit alike. An historically sharp increase in interest rates, a slow slide in economic growth following a post-pandemic boom, growing household financial… Read the rest
The Industry Pulse | 2025 Vehicle Finance Conference & Expo
Dec 18, 2024
The Industry Pulse
Join our All-Star Pulse Panel for a comprehensive analysis of 2024 and predictions for 2025 in the vehicle finance ecosystem and the broader global vehicle marketplace. Get the download on the current economic environment… Read the rest
CEO Roundtable | 2025 Vehicle Finance Conference & Expo
Dec 17, 2024
CEO Roundtable
Hear from four senior leaders in the vehicle-finance industry for a fast-paced and insightful discussion on the current business environment. Explore the challenges and opportunities in the marketplace and learn how these… Read the rest
AFSA on House Financial Services Chair
Dec 13, 2024
AFSA congratulates Rep. French Hill(R-AR), on his election to the Chairmanship of the House Financial Services Committee. AFSA has worked with Representative Hill on a number of issues crucial to American consumers and the consumer credit… Read the rest
Seeking Debt Collection Clarity
Dec 13, 2024
AFSA’s State Government Affairs team submitted a comment letter to the New York Department of Consumer and Worker Protection. The department is attempting to promote fair debt collection practices and AFSA is seeking clarification of… Read the rest
Chopra’s Final Hearing This Congress
Dec 13, 2024
Yesterday, Rohit Chopra, director of the Consumer Financial Protection Bureau (CFPB), testified before the Senate Committee on Banking, Housing, and Urban Affairs. AFSA attended the hearing, entitled “Consumer Protection: Protecting… Read the rest
Capital Policy Update | 2025 Vehicle Finance Conference & Expo
Dec 11, 2024
Amid lingering questions about consumer confidence, sustainable economic growth, deficit spending, trade issues, and the political and regulatory agendas that inform them, state and federal policymakers – elected officials, regulators,… Read the rest
AI Behind the Wheel | 2025 Vehicle Finance Conference & Expo
Dec 11, 2024
AI Behind the Wheel: How It’s Steering Strategies for Auto Finance
While the financial services industry has long utilized AI and machine learning, auto financiers continue to innovate and harness advanced AI capabilities to enhance … Read the rest
Exemption for Floorplan and Inventory Financing
Dec 05, 2024
AFSA’s State Government Affairs team submitted a comment letter to the New Jersey Senate requesting amendments to S 1397. As currently written, S 1397 requires a new set of disclosures to borrowers at the time credit is initially offered.… Read the rest