The rule was enacted to “make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures,” according to FinCEN.

The U.S. Treasury Department says it will not enforce a Biden-era small business rule intended to curb money laundering and shell company formation.

The Biden-era small-business rule is aimed at curbing money laundering and formation of shell companies. The rule had been mired in litigation as business leaders cited privacy and security concerns.

Before the CTA was adopted, we were the money laundering capital of the world,” Taylor English Duma partner Jonathan Wilson of the Corporate Transparency Act. “Sounds like we're going back to being the money laundering capital of the world.

The U.S. Treasury said it wouldn't impose penalties associated with Beneficial Ownership Information reporting under the current requirements for U.S. entities.

The rule required most small businesses to register their owners with the government, an effort to control money laundering and shell companies.

As of last week, business owners faced a March 21 deadline to complete the report. Now, the deadline has been suspended.