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National District Attorneys Association Urges Restoration of Key Law Enforcement Tool to Combat Money Laundering
By: National District Attorneys Association
Arlington, VA — The National District Attorneys Association (NDAA) expresses deep concern over the nationwide preliminary injunction issued by the U.S. District Court for the Eastern District of Texas that halts enforcement of the Corporate Transparency Act (CTA). This ruling, part of the lawsuit Texas Top Cop Shop, Inc., et al. v. Garland, challenges the constitutionality of the CTA and threatens to undermine a critical tool in the fight against financial crimes.
The bipartisan and congressionally approved CTA is a cornerstone of modern efforts to combat transnational terrorism financing and money laundering. The law requires companies to disclose their “beneficial” owner(s) to a secure database managed by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Passed by Congress in 2021 with strong backing from state, local, and federal law enforcement, the CTA provides prosecutors with essential information to disrupt illicit financial activities.
“The NDAA strongly supports the Corporate Transparency Act as an indispensable tool for combating transnational crime, terrorism financing, and other illicit activities,” said Nelson Bunn, Executive Director of NDAA. “Access to beneficial ownership information is not just a tool — it is a necessity for prosecuting crimes that threaten our national security and public safety. Blocking this law hinders justice and undermines Congress’s intent.”
The ruling from the Eastern District of Texas contradicts decisions from federal courts in Oregon, Michigan, and Virginia, where judges have consistently denied similar challenges to the CTA. The U.S. Department of Justice is appealing the Texas court’s decision, highlighting the urgent need to reinstate this vital law enforcement mechanism.
NDAA urges Congress, state legislators, and the public to recognize the CTA’s pivotal role in combating complex financial crimes and supporting prosecutors in their mission to uphold justice.
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About the National District Attorneys Association:
Formed in 1950, NDAA is the oldest and largest national organization representing state and local prosecutors in the country. With more than 6,000 members representing over two-thirds of the state and local prosecutors’ offices, NDAA is recognized as the leading source of national expertise on the prosecution function and is a valuable resource for the media, academia, government, and community leaders. NDAA’s mission is to provide state and local prosecutors with the knowledge, skills, and support they need to ensure that justice is done and that public safety rights are protected.