The Treasury says it plans to issue a rule that will focus on transparency requirements for companies reporting to foreign entities|woodleywonderworks|CC BY 2.0

The Treasury Department announced it will not enforce penalties under the Corporate Transparency Act, a Biden-era anti-money laundering law requiring businesses to disclose their real owners.

The Trump administration argues the law burdens low-risk entities. However, critics say the rollback weakens efforts to prevent criminal money laundering in the US.

The Treasury plans to issue a new rule focusing on transparency requirements for companies reporting to foreign entities.