Trump is under fire for “destroying” laws against drug cartels while maintaining tariffs on fentanyl behind Canada
The law is hailed as a historical step in the right direction, the culmination of more than a decade of work between Washington Republicans and Democrats to combat dirty money.
The Enterprise Transparency Act (CTA) targets drug cartels and other dangerous criminals who use dark Shell to move their rude and rude. Bipartisan law, created in 2021 at the end of Donald Trump’s first term as U.S. president, is seen as a much-needed reform of the U.S. ability to fight financial crime.
But four years later, now back in the office, Trump has completely narrowed the legal reach while using fentanyl trafficking as a justification for a devastating trade war against Canada.
“The fact that in the same month where the White House will declare a maximum effort fight against fentanyl that involves tarriffs on Canada and Mexico for this purpose, that they will also put out a public statement saying that they’re not going to enforce one of our most important … ways of combating fentanyl, getting to the money behind it within our own borders, I think it belies explanation,” said Scott Greytak, director of advocacy for anti-corruption group Transparent International USA, it also has Canadian chapters.
The Trump administration’s decision comes as the president continues to claim deadly opioids pouring in from Canada, although his administration’s own data shows that less than one-hundred of fentanyl from U.S. border agents occupied in the last fiscal year came from the northern border.
“Reasons for the imposition of harmful tariffs”
“One of Canada’s greatest allies has been working with the United States on border security, demonstrating a shared commitment to addressing common challenges, including fentanyl trafficking,” Sen. Gary Peters, the Michigan Senate’s top Democrat, said in a statement to CBC Windsor.
“While President Trump criticized Canada for not taking the fentanyl issue seriously – placing harmful tariffs on this, his administration is also working to undermine legislation passed by Congress to help law enforcement and Shell raise the use of illegal activities such as drug trafficking,” Peters said.
For the first time, the CTA forced smaller companies to disclose the name of their true owners to the U.S. Treasury Department and then store them in a secure database accessible to law enforcement. Canada has a similar ownership registry that can be searched publicly.
But in early March, the Trump administration Announce It will cease penalties for U.S. citizens and companies that do not comply with the law.
Two days later, Trump slapped Canada and Mexico 25% higher tariffs, explain Neither country has since done enough to curb fentanyl into Trump’s flows, and since then, some tariffs have been removed, but threatened to re-estimate them in April.
You know, the fentanyl problem on the northern border is basically red herring.– Brian Masse, New Democratic MP, Windsor West
Recently, government claims for ownership reporting on U.S. citizens and companies have been completely ignored Publishing rulesIt hopes to be finalized sometime this year, which limits the law’s application for foreign companies doing business in the United States
Brian Masse, a New Democratic lawmaker riding directly across from Detroit, said the Trump administration’s decision will make it harder for investigators on both sides of the border to track and destroy illegal funding flows — which is “actually the heart of organized crime operations.”
“Everything will be more stupid,” said NDP critic Masse. “There is no doubt.”
Fact Alliance, another anti-corruption group, Changed The entity that would be cut by 99% initially covered by the law, “effectively obscuring the most important anti-money laundering laws in a generation.”
Greytak is linked to international transparency, calling it “an incredible incentive that the government otherwise is committed to fighting fentanyl and other drug trafficking.”
Reasons for changing legal applications
Trump and Treasury Secretary Scott Bessent claim The CTA’s ownership reporting requirements are “heavy” and “economic threat”, especially for small businesses.
From 2019, the first Trump administration started, it seems to be a reversal Praise “This would require U.S. companies and limited liability companies to disclose their beneficial owners, and the measure would help prevent vicious actors from using anonymity to exploit these entities for the benefit of crime,” the bill said at the time.
However, the supportive statement made it clear that lawmakers need to improve legislation, partly because of “protecting small businesses from excessively heavy disclosure requirements.”
Gretak said Congress did it. He and other legal supporters said the reporting process was relatively simple. The company only needs to fill in Online format Request information such as name and address, as well as a copy of government identity certificates.
“This law has been made over a decade of multiple governments – many iterations and amendments to the bill, many hearings, many reviews of the bill – we think the final product is really well suited to be tailored here and can meet the threats here,” Greytak said.
“Not surprising,” Maas said, Trump supports weakening the law.
“They want less responsibility for their money in Washington, D.C. and for fundraising activities as well as donors and corporate elites,” he said.
“You know, the fentanyl problem on the northern border is basically red herring.”
U.S. President Donald Trump said the “large amount” of fentanyl crosses entering the United States from Canada came into the United States, but in fact, less than one hundred of synthetic opioids caught on the U.S. border.
Masse’s riding includes a bunch of Windsors Canadian city expectations The most harmed by tariffs. It also includes the Ambassador Bridge, a daily crossover of approximately $300 million in US goods between Canada and the United States.
Masse said Windsor is not unfamiliar with the opioid crisis, so the fentanyl problem is close at home.
“We mean that drugs can be entered and exited and weapons.”
Maas said he “absolutely” hopes the federal government will hire more border officials, especially those with “skills that are more accustomed to dealing with the financial world” to respond to recent actions by the Trump administration.
In Washington, two senators supporting the CTA asked the Treasury Department to explain the “legal basis” of changing the law.
“We encourage you to fully implement the CTA so law enforcement agencies across the country can get the necessary information to prevent human trafficking, terrorist financing, border smuggling, drug distribution, and many other categories of criminal activities,” Iowa’s openly public Senator Chuck Grassley, and Sheldon Whitehouse, from Rhode Island, a Democrat, wrote in Rhode Island. Letter from March 10.
It is not clear whether the senator has received a response. Neither their office nor the Treasury requested comments on the story through publication time.
Other advocates believe that the government’s actions will not continue in court.
Ian Gary, executive director of the Fact Alliance, said in a statement that Shadowy Shell Companies is a favorite tool for U.S. rivals and a tool for “fentanyl traffickers, money launderers and tax liars.”
He added: “Hidding out the Corporate Transparency Act is an unconstitutional subversion of Congress’ intentions and cannot survive judicial review.”
