CTA Enforcement Halt Enables $Billions in Fraud: Treasury Violates Duty

I urge Congress to immediately compel the Treasury Department to resume enforcement of the Corporate Transparency Act. Treasury's permanent halt of beneficial ownership data collection violates the President's constitutional duty to faithfully execute the laws Congress passes. The Corporate Transparency Act, passed with bipartisan support, closes a critical loophole that criminals exploit worldwide. Shell companies enable drug trafficking networks, sanctions evasion, healthcare fraud schemes, and political corruption. The law requires beneficial owners to provide basic information—names, addresses, birth dates, and identification—to law enforcement and financial institutions. Real cases demonstrate why this law matters. A transnational criminal organization submitted $10.6 billion in fraudulent Medicare claims using shell medical supply companies with hidden beneficial owners—Operation Gold Rush (2025-2026). Russian oligarchs concealed ownership of Miami condominiums through nominee shells, evading U.S. sanctions for years until enforcement in January 2025. A Texas shell company laundered nearly $500,000 monthly for an opioid trafficking ring, with criminals posing as legitimate business owners. A Russian-controlled shell company made U.S. political donations while appearing domestically owned, obscuring foreign influence over American elections. All of these schemes relied on the ability to hide true beneficial ownership. Beneficial ownership transparency would have exposed these schemes faster and made similar crimes harder to execute. In spite of this, the Treasury Department eliminated BOI reporting requirements in August 2026, and destroyed a database containing 16.4 million verified reports as of March 2026—a resource that law enforcement and financial institutions depend on to prevent crime. I understand Treasury Secretary Bessent claimed the reporting requirement is "burdensome" for businesses. This is simply not true. The burden itself is minimal: the form takes like five minutes to fill out. The real question is why the administration refuses to enforce the law. What is the President concealing in his own use of shell companies? Congress must act immediately to: 1️⃣ Demand Treasury resume collection of beneficial ownership data without delay. 2️⃣ Pass clarifying legislation reaffirming full enforcement of the Act if necessary. 3️⃣ Hold hearings investigating why Treasury abandoned this law & whether political considerations influenced the decision. 4️⃣ Consider whether this abandonment constitutes a constitutional violation warranting accountability. The Corporate Transparency Act is the law of the land. Congress must ensure it is enforced