Rob Bonta says Congress passed the Corporate Transparency Act because law enforcement needed an additional tool against illegal financial transactions
Rob BontaCalifornia attorney general, in a press release announcing the lawsuit
California Attorney General Rob Bonta says Congress passed the Corporate Transparency Act with bipartisan support because law enforcement needed an additional tool to root out illegal financial transactions and corruption.
“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.”
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 California Attorney General Rob Bonta announcing that California joined the coalition suing over FinCEN's rule, with his statement.
Archived copy (opens in a new tab)Before the quotation
Bonta said the Trump administration is unlawfully rolling back reporting requirements meant to help law enforcement track down bad actors who hide financial assets in shell companies, which he said are often used by cartels and criminals.
After the quotation
He said his office is committed to supporting law enforcement's efforts to enforce the laws that keep people safe and hold bad actors accountable.
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. Bonta calls the rollback unlawful and says Congress meant the law as a tool for law enforcement, which condemns the policy under scrutiny.
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More from this case
Read the full caseLetitia James says the Trump administration is gutting a law that forces shell companies out of hiding
“The Trump administration is gutting a critical federal law that forces these companies out of hiding and helps law enforcement track down stolen funds.”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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- Rob Bonta says Congress passed the Corporate Transparency Act because law enforcement needed an additional tool against illegal financial transactions
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The Dispute Index. "Rob Bonta says Congress passed the Corporate Transparency Act because law enforcement needed an additional tool against illegal financial transactions". First published: 2026-10-29. Last updated: 2026-10-29. https://disputeindex.com/events/7203-california-attorney-general-rob-bonta-says-congress-passed