In a Monday statement, Ian Gary, executive director of the Financial Accountability and Corporate Transparency Coalition, called the move a “hollowing out” of the Corporate Transparency Act that runs counter to years of bipartisan work to “end the scourge of anonymous shell companies.”

The Trump administration won't enforce a Treasury Department rule requiring shell companies to disclose their owners and beneficiaries

The U.S. Treasury Department said on Sunday it would not enforce an anti-money laundering law that obliges millions of business entities to disclose the identities of their real beneficial owners. The Trump administration has opposed the Biden-era Corporate Transparency Act on the grounds that it is a burden on low-risk entities.

But President Donald Trump’s return to power has cast doubt on the future of the most monumental anti-kleptocracy reform push in decades. Increasingly, the United States has become the epicenter of the multitrillion-dollar offshore economy.

The Treasury will no longer enforce an anti-money laundering law that Trump said was an "absolute disaster" for small businesses.