Letitia James says the Trump administration is gutting a law that forces shell companies out of hiding
Letitia JamesNew York attorney general, in a press release announcing the lawsuit
New York Attorney General Letitia James says the Trump administration is gutting a federal law that forces shell companies out of hiding and helps law enforcement track down stolen funds, as New York joins the lawsuit against the Treasury rule.
“The Trump administration is gutting a critical federal law that forces these companies out of hiding and helps law enforcement track down stolen funds.”
Official statement
Where this statement fits
21 attorneys general sue to restore shell-company ownership reporting; Treasury says the exemption relieves small businesses
On October 27, 2026, 20 states and the District of Columbia sued the Treasury Department in federal court in Oregon over FinCEN rules that exempt all domestic companies from reporting their beneficial owners under the Corporate Transparency Act. The states say the rules effectively repeal the law, weaken law enforcement and tax collection, and order the deletion of data already reported. Treasury says the exemption relieves small businesses of burdens that the reports' usefulness does not justify.
Source and context
Official statement
About this source
Press release from New York Attorney General Letitia James announcing that New York joined the coalition suing over the Treasury rule, with her statement.
Archived copy (opens in a new tab)Before the quotation
New York's attorney general said New York joined a coalition of 20 other attorneys general in suing to block the Treasury rule. Her statement begins by saying secretive shell companies help drug traffickers, tax cheats and other criminals hide their illegal profits.
After the quotation
She said the states were taking action to uphold the law and ensure that criminal networks cannot abuse the system to hide their activities.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
The case concerns the Treasury rules exempting domestic companies from beneficial ownership reporting. James says the administration is gutting the law and joins the suit to block the rule, which condemns the policy under scrutiny.
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More from this case
Read the full caseRob Bonta says Congress passed the Corporate Transparency Act because law enforcement needed an additional tool against illegal financial transactions
“Congress passed the Corporate Transparency Act with bipartisan support because it understood law enforcement needed an important additional tool to root out illegal financial transactions and corruption.”Read statement
FinCEN says exempting U.S. companies relieved small businesses of burdens not justified by the reports' usefulness
U.S. Department of the Treasury
“The IFR's changes relieved U.S. small businesses of burdens imposed by the Reporting Rule, which the Secretary determined were not justified by the usefulness of the reports generated and the information they made available.”Read statement
Scott Bessent says the action reins in burdensome regulations, in particular for small businesses
“Today's action is part of President Trump's bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”Read statement
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- Letitia James says the Trump administration is gutting a law that forces shell companies out of hiding
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The Dispute Index. "Letitia James says the Trump administration is gutting a law that forces shell companies out of hiding". First published: 2026-10-29. Last updated: 2026-10-29. https://disputeindex.com/events/7202-new-york-attorney-general-letitia-james-says-the