In short
- ICIJ notes that New York's LLC Transparency Act, which took effect in January 2026, was stripped of its public database requirement.
- ICIJ states that Australia required more than 80,000 professionals to check clients and report suspicious money since July.
What happened
ICIJ reviewed global transparency reforms five years after the Pandora Papers, finding that many laws, including the U.S. Corporate Transparency Act and New York's LLC Transparency Act, were weakened or rolled back. In March 2025, the U.S. Treasury exempted over 99% of companies from reporting, and in August, made the change permanent, deleting collected information on U.S. owners.
Other countries, such as Australia, have advanced transparency measures, requiring more than 80,000 professionals to check clients and report suspicious money since July. However, public access to ownership registries remains limited, and many promised reforms have stalled or been diluted, leaving gaps in global AML/CFT efforts.
In March 2025, President Donald Trump’s administration exempted U.S. companies from the Corporate Transparency Act. Because New York’s law was tied to the CTA, it would also now cover only LLCs formed abroad.
In numbers
- more than 99% companies exempted from Corporate Transparency Act
- more than 80,000 Australian professionals required to check clients since July
Named in this item
Organization, regulator US — —
What compliance teams should check
- Review the exemption status of U.S. companies under the Corporate Transparency Act as of March 2025.
- Assess the coverage and limitations of New York's LLC Transparency Act, especially its application to LLCs formed abroad after January 2026.
- Verify client screening and suspicious money reporting requirements for Australian lawyers, accountants, and real estate agents since July.
Why it matters
This story highlights the rollback and dilution of key transparency laws, such as the Corporate Transparency Act and New York's LLC Transparency Act, which were intended to unmask anonymous company ownership and combat money laundering. The weakening of these laws, especially the exemption of more than 99% of U.S. companies and removal of public access to registries, creates significant blind spots for compliance officers. It underscores the need for vigilance in monitoring regulatory changes and adapting AML/CFT controls to address gaps left by incomplete or reversed reforms.
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