Nigeria, April 22 -- A Republican-led House committee voted on Tuesday to effectively dismantle a landmark anti-corruption law, advancing legislation that would exempt American business owners from a federal requirement to disclose their true identities to the government.

The House Financial Services Committee voted 26 to 25 to repeal the Corporate Transparency Act, a bipartisan measure enacted in December 2020. In its place, the panel advanced the Repealing Big Brother Overreach Act, a bill with strong Republican backing and 191 co-sponsors that would significantly narrow the scope of federal financial disclosures.

Under the proposed replacement, foreign nationals would still be required to report their beneficial ownership to the Trea...