While the intent of the law was to stem money laundering, the CTA is not only bad policy, it is unconstitutional. Failure of a small business to comply—intentional or not—could result in up to $10,000 in fines and up to two years in prison.

NSBA is in the midst of a lawsuit against Treasury over the implementing regulations of the CTA. NSBA won the first ruling at the District court, and in September made strong arguments before an appellate court panel of judges. Unfortunately, there is no clear timeline for when the appellate court will rule or if that will even be before the end of the year.

As it stands today, only NSBA members as of March 1, 2024, are currently exempt. An act of Congress to repeal the law remains the best way to ensure this bad policy doesn’t see the light of day. Thankfully, Rep. Warren Davidson recently introduced a bill to do just that - H.R.8147.

Please take a moment TODAY to urge your lawmakers to support every effort to delay and ultimately repeal this harmful law, including Representative Davidson's bill.