On December 5, 2024 the Government filed a notice of appeal to the U.S. Court of Appeals for the Fifth Circuit challenging the preliminary injunction issued by the U.S. District Court, Eastern District of Texas in Texas Top Cop Shop, Inc. v. Garland, C.A. No. 4:24-CV-478. With the government’s appeal of the preliminary injunction companies and their advisors should continue to evaluate the applicability of the CTA and, if not exempt from reporting, gather the necessary beneficial ownership and other reporting information so that reporting companies will be prepared to submit reports if the injunction is stayed, lifted or modified. Reporting companies can still proceed with filings to ensure compliance and avoid year-end timing issues if the preliminary injunction is lifted.
Additionally, FinCEN posted the following alert on their website in response to the findings of the case.
There is no way to predict how quickly the appeal will move through the court, providing more clarity regarding filing requirements. We encourage you to consult legal counsel in determining your plan for filing.
