OH SCR10

Congress enacted the Corporate Transparency Act (CTA), 31 U.S.C. 5336 in 2021 to tighten money laundering laws by requiring the Financial Crimes Enforcement Network (FinCEN) to identify shell companies and create a registry of businesses with less than $5 million in annual sales and fewer than 20 employees.

FinCEN is expected to collect 32 million new reports in 2024 and millions annually thereafter, as the law requires reporting for all "beneficial owners," defined as anyone with more than 25% stake in a company.

The CTA authorizes stiff fines and jail time for noncompliance, and 69 groups representing millions of small business owners stated in November 2023 that neither they nor FinCEN are ready for the law to take effect in January 2024.

The Ohio Senate and House of Representatives condemn the Corporate Transparency Act and ask Congress to repeal it on the grounds that it places burdensome and unreasonable requirements on small businesses.

The Senate Clerk is directed to transmit copies of this resolution to the President, Treasury Secretary, Congress leadership, Ohio's Congressional delegation, and Ohio news media.