Over the past two years you may have heard the term "FinCEN" and the on/off enforcement rule. On Thursday. January 23, 2025, the Supreme Court ruled in favor of the requirement that owners of millions of small businesses must register with an arm of the Treasury Department.

The law's enforcement remains blocked and companies still are not required to report information as a result of a separate order issued on Jan. 7 in another case by Texas-based U.S. District Judge Jeremy Kernodle.

The Financial Crimes Enforcement Network (FinCEN) is a US government agency that fights financial crimes like money laundering and terrorism financing. FinCEN is a bureau within the US Department of the Treasury. 

Many local small business and "LLC" owners will now need to divulge their ownership identity, if they have not already done so. Local CPA's and accounting firms can complete the process for you or you can complete the requirements at the Department of Treasury website page.

The penalties for small businesses are steep. According to the Department of Treasury "Any person who fails to comply with the registration requirements may be liable for a civil penalty of up to $5,000 for each violation. Failure to comply includes the filing of false or materially incomplete information. Each day a violation continues constitutes a separate violation."

Owners and part-owners of an estimated 32.6 million small businesses around the nation must register personal information with Treasury’s Financial Crimes Enforcement Network, or FinCEN. The information includes photo IDs and home addresses.

Todd McCracken, the CEO of the Small Business Association, has called on Congress to repeal the law.