After the Financial Crimes Enforcement Network (FinCEN) stated that it would hold off on taking enforcement actions against Reporting Companies for failure to comply with the March 21, 2025, deadline under the Corporate Transparency Act (CTA), the U.S. Department of the Treasury announced its own intention to limit CTA enforcement to foreign companies.
FinCEN’s March 21 CTA Deadline to Report Beneficial Ownership Info Will Not Be Enforced … Yet
The Financial Crimes Enforcement Network (FinCEN) published new guidance on Feb. 27, 2025, putting its plan to begin enforcing the Corporate Transparency Act (CTA) on hold. After the Feb. 17 order by the U.S. District Court for the Eastern District of Texas in Smith v. United States Department of Treasury made the CTA once again enforceable, FinCEN set a deadline of March 21 for reporting companies to submit beneficial ownership information.
Compliance, Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts
Department of Justice Suggests “Aggressive” Enforcement of False Claims Act
In a speech to the Federal Bar Association’s annual qui tam conference on Feb. 20, 2025, Michael Granston, Deputy Assistant Attorney General for the Commercial Litigation Branch at the U.S. Department of Justice, discussed how the Trump administration plans to “aggressively” enforce the False Claims Act (FCA). His statements come on top of other comments from Trump administration officials stating that DEI, domestic sourcing/industry, pandemic relief and cost-related considerations will be among the administration’s key enforcement priorities. This raises compliance risks for numerous entities, including healthcare and government contracting industries, federal grant recipients, educational institutions, and cybersecurity, import/export, freight forwarding and infrastructure companies.
Granston’s remarks were made one day before the U.S. District Court for the District of Maryland preliminarily enjoined the provision concerning certifications under the FCA in Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The order would require a term in every procurement contract or grant award that compliance in all aspects with all applicable federal antidiscrimination laws is material to the government’s payment for purposes of the FCA.
Read on to learn more about Granston’s remarks and the FCA enforcement landscape.
Texas Court Stays Nationwide Injunction Staying the CTA, Deadline to Report Beneficial Ownership Information is March 21, 2025
In our last update, we reported that despite the Supreme Court staying the nationwide injunction against FinCEN’s enforcement of the CTA in one Texas case, a nationwide stay of the Reporting Rule granted by a federal judge in the Eastern District in Smith v. United States Department of Treasury (6:24-cv-00336) remained in effect.
Practical Tips for Companies Following President Trump’s Pause on FCPA Enforcement
Since the President signed the February 10, 2025 Executive Order (Order) pausing enforcement of the Foreign Corrupt Practices Act (FCPA) (Client Alert: President Trump issues Executive Order “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security”), companies with cross-border business operations have likely faced questions from both internal and external stakeholders regarding what the Order means from a practical, day-to-day perspective. In some cases, this may include questions as to whether companies need to continue maintaining anti-bribery and anti-corruption compliance programs and related controls. The short answer is “yes.” Read on to learn why and for practical advice for internal legal teams addressing the current landscape.
Major Shift on Foreign Corrupt Practices Act: Trump Signs EO Pausing Enforcement
Last night, in a move with wide-ranging implications for American companies doing business abroad, President Trump issued an executive order (Order) temporarily halting enforcement of the Foreign Corrupt Practices Act (FCPA). The Order directs Attorney General (AG) Pam Bondi to review guidelines and policies governing FCPA investigations and enforcement actions in the next 180 days, with an option to extend the review another 180 days if appropriate. During that time, no new FCPA investigations or enforcement actions will be opened, unless AG Bondi determines an exemption is appropriate, and all currently pending FCPA investigations and enforcement actions will be reviewed to “restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives.” After new guidance is issued, new FCPA investigations initiated or current actions that are continued must follow the new guidelines, with new matters requiring the approval of AG Bondi. At the end of the review period, AG Bondi will also consider if additional action is appropriate, including possible remedial measures with respect to past FCPA investigations and enforcement actions.
State Attorneys General Poised to Crack Down On Price Gouging Amid Market Pressure
This past Thursday, New York Attorney General Letitia James issued a warning to businesses against price gouging for eggs and poultry. The current bird flu outbreak began in March 2024 but has become a topic of increasing concern for consumers and businesses in the new year after more than 13 million hens—necessary to the success of the egg and poultry industry—died or were slaughtered within the last two months.
Trump Tariffs on Canada, Mexico, and China
On February 1, 2025, the Trump Administration imposed long-expected tariffs on imports from Canada, Mexico, and China through the issuance of three executive orders (“EOs”). While some recent reporting suggested that implementation of these tariffs may be delayed to March 1, 2025, the White House confirmed on January 31, 2025 that these tariffs would be implemented according to a previously-set deadline. However, following a flurry of threats of counter-tariffs and phone calls between President Trump and his counterparts in Canada and Mexico, on February 3, 2025, the leaders of Canada and Mexico confirmed that the United States will delay tariffs for a month while both countries work towards more long-term agreements. The tariff imposed on China went into effect on February 4.
Trump Administration Tariff Regime: Uncertainty and Expectations
As he enters his second week in office, President Donald Trump is forecasting a desire to implement a muscular trade policy leaning heavily on the imposition of tariffs—potentially on a global basis—as a means of extracting favorable trade deals and other economic and political concessions from trading partners across the globe. As of this writing, much remains uncertain with respect to tariff implementation. What is clear is that President Trump’s tariff-related warnings have commercial and political parties around the world on edge.
U. S. Supreme Court Vacates National Injunction Staying the CTA in One Case, But a Separate Nationwide Stay Against Enforcement Stands
Here we go again – another CTA update hot off the press.
- In our last update, we reported that the U.S. Department of Justice (DOJ) filed with the U.S. Supreme Court an emergency application to stay the injunction preventing FinCEN from enforcing the CTA, asking the Court to either stay the Texas district court’s December 3, 2024, injunction pending the Fifth Circuit’s merits review in Texas Top Cop Shop v. Garland (4:24-cv-00478-ALM), or, in the alternative, to treat the application as a “petition for a writ of certiorari before judgment presenting the question whether the district court erred in entering preliminary relief on a universal basis.”
- On January 7, 2025, in a separate Texas case – Smith v. United States Department of Treasury (6:24-cv-00336) – a federal judge in the Eastern District issued a separate order enjoining enforcement of the CTA against the plaintiffs in that case and staying the Reporting Rule on a nationwide basis. At this time, the government has not appealed in that matter.
- But, on January 23, 2025, the Supreme Court granted the DOJ’s application in Texas Top Cop Shop, staying the nationwide injunction against FinCEN’s enforcement of the CTA. The stay will apply through the appeal process before the Fifth Circuit Court of Appeals and disposition of a petition for a writ of certiorari.