The U.S. District Court for the Eastern District of Texas issued a nationwide injunction blocking the Corporate Transparency Act, which establishes the Financial Crimes Enforcement Network’s (FinCEN) beneficial ownership information (BOI) database. The reporting requirements do not apply to credit unions, but credit unions would access BOI through the database.

The court found the law exceeds Congress’s authority and violates the Constitution’s Commerce Clause by representing a federal attempt to monitor companies created under state law, while ending “a feature of corporate formation as designed by various states — anonymity.”

The Corporate Transparency Act required covered entities to disclose BOI to FinCEN by January 2025.