The CTA has faced criticism since its introduction in 2019, with opponents arguing that it imposes excessive compliance costs and violates privacy. The law required businesses to report identifying information, including names, birthdates, and addresses, for each beneficial owner and company applicant.

Supporters of the CTA, including law enforcement agencies, argued that it was necessary to prevent the use of anonymous shell companies for laundering illicit funds. However, compliance has been sluggish, with only about 20% of eligible entities submitting reports by the end of 2024.