Press Release: 10/29/2026

AG Campbell Challenges Federal Rule Weakening Financial Transparency Requirements

Published October 28, 2026

BOSTON — Massachusetts Attorney General Andrea Joy Campbell has joined a coalition of 21 attorneys general in a lawsuit challenging a Trump Administration rule that effectively guts federal financial transparency requirements designed to help law enforcement investigate money laundering, fraud, and other financial crimes. 

The Corporate Transparency Act requires businesses to disclose information about the individuals who own or control them. These reporting requirements help law enforcement identify individuals who may use shell companies – businesses that can be used to hide the identities of their true owners – to conceal illegal financial activity, such as money laundering, fraud, and tax evasion.

Currently, the United States Treasury Department’s Financial Crimes Enforcement Network, known as FinCEN, has exempted nearly all businesses from this requirement, effectively undoing Congress’s mandate to collect and maintain this critical information.

“Financial transparency is essential to fighting fraud, money laundering, and other financial crimes,” said AG Campbell. “When individuals can hide behind shell companies, it becomes harder for law enforcement to follow the money and hold those responsible accountable. This rule strips away critical reporting requirements that Congress put in place to prevent that kind of abuse. We’re suing to protect these important safeguards and ensure the law is enforced.” 

Congress passed the Corporate Transparency Act with bipartisan support in 2021. It created a Treasury database of business ownership information that law enforcement can use to trace illegal financial activity, track down stolen assets, and uncover fraud and corruption.

In August 2026, the Trump Administration issued a rule exempting nearly every business from the reporting requirements. FinCEN subsequently announced plans to delete the ownership information already in the database, potentially eliminating records that could support ongoing and future law enforcement investigations. The states argue that the rule would violate Congress’s mandate and other federal laws.

The lawsuit says FinCEN:

• Violated the Corporate Transparency Act and Administrative Procedure Act
• Skipped required legal steps before changing the rule
• Acted arbitrarily and without a reasonable explanation
• Failed to properly consult the Secretary of Homeland Security and the U.S. Attorney General before exempting nearly all businesses from the requirement

The coalition is asking the court to invalidate FinCEN’s rule and preserve the ownership reporting requirements and database required by federal law. 

The case is led by Oregon Attorney General Dan Rayfield and Illinois Attorney General Kwame Raoul. Also joining are the attorneys general of Arizona, California, Colorado, Delaware, Washington, DC, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Virginia, Washington, and Wisconsin.

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