Wyden, Colleagues Urge Federal Courts to Affirm That Congress Holds the Power to Crack Down on Money Laundering
Washington, D.C. — U.S. Senator Ron Wyden, D-Ore., joined his colleagues in filing amicus briefs that called on two federal courts to affirm that Congress holds the power to crack down on anonymous money laundering under the bipartisan Corporate Transparency Act passed in 2021.
The four-year-old law is considered the most important anti-money laundering law passed in two decades. It ensures law enforcement and national security officials are able to learn the true identities of people who own or control U.S. corporations and other legal entities used as shell companies to conceal illegal activities. By identifying these under-the-radar financial criminals, the federal government can better combat terrorist financing, money laundering, sanctions evasion, proliferation financing, tax evasion, and other illicit finance carried out through shell companies. In addition to holding U.S. corporations accountable, the law plays an essential role in protecting U.S. national security and public safety.
“Anonymous shell corporations harm the United States’ national security, foreign affairs, foreign and interstate commerce, and tax interests. Such shell companies often operate in multiple layers to hide their true owners and violations of key sanctions, money-laundering, and tax laws. Allowing illicit money to be hidden through corporate forms also undermines public safety and law enforcement efficacy on a national and international scale,” wrote the lawmakers in their amicus briefs to the U.S. Court of Appeals for the 4th and 5th Circuits.
In their amicus briefs, the lawmakers argued that Congress has robust powers under Article I to legislate on national security, tax, foreign affairs, and interstate and foreign commerce matters – all of which fall under the law. As a result of enacting the law, Congress has been able to engage in careful oversight, including through testimonies, reports, and committee hearings, over anonymous actors who have used shell companies to exploit the American financial system and launder their unlawful gains.
In addition to Wyden, the amicus briefs were led by Senators Sheldon Whitehouse, D-R.I., Elizabeth Warren, D-Mass., and Jack Reed, D-R.I., and Representative Maxine Waters, D-Calif.
The lawmakers filed briefs in Texas Top Cop Shop v. Bondi, a case at the U.S. Court of Appeals for the 5th Circuit, and Community Associations Institute v. Treasury, a case for the 4th Circuit. In January 2025, the members filed a similar amicus brief in Firestone v. Yellen, a case for the 9th Circuit. In April 2024, the lawmakers filed their first amicus brief in National Small Business United v. Yellen, a case for the 11th Circuit.
Wyden is a longtime champion of holding corporations accountable. In 2017, Wyden introduced bipartisan legislation to prevent individuals in Congress from using anonymous shell corporations to engage in illicit activities. In 2019, Wyden reintroduced legislation to combat money laundering by requiring corporations to disclose their beneficial owners. In 2024, Wyden launched an investigation into the Geneva-based multinational bank Pictet for potential ongoing tax evasion by a U.S. citizen under criminal investigation.
The text of the 4th Circuit brief is here.
The text of the 5th Circuit Brief is here.
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