CTA Update: Supreme Court Lifts Injunction, BOIR Filing Still Halted by District Court Ruling

On January 23, 2025, the Supreme Court of the United States granted the US Government’s motion invalidating the preliminary injunction issued by the U.S. Eastern District Court of Texas and confirmed U.S. Court of Appeals for the Fifth Circuit in the case, Texas Top Cop Shop, Inc., et al. v. Garland, et al. As a direct result, the ruling allowed the Financial Crimes Enforcement Network (“FinCEN”) to enforce the BOIR filing obligations.

However, on January 7, 2025, in a lesser-known case challenging the CTA, Smith v. United States Department of the Treasury, No. 24-cv-336 (E.D. Tex. Jan. 7, 2025), the same Texas federal district court issued a second nationwide injunction halting enforcement of the CTA, which was not addressed in the motion granted by the Supreme Court. Therefore, CTA enforcement is still enjoined under this other preliminary injunction.

On January 24, 2025, FinCEN released a public statement, acknowledging the existence and effectiveness of the separate nationwide injunction.

Thus, reporting companies are not currently required to file BOIRs despite the Supreme Court’s latest ruling and are thus not currently subject to liability for failing to file at this time.

We understand that these judicial decisions are confusing and certainly cause uncertainty. We are closely monitoring the situation and will continue to keep you informed of any new developments or guidance from FinCEN or the courts through the ever-changing landscape of CTA enforcement.

If you have any questions or need assistance with the CTA compliance, please contact our CTA Task Force by calling our offices at (516) 599-0888 or messaging Jim Black (jblack@frblaw.com) or Alexander Migliorini (amigliorini@frblaw.com).