Statement of Administration Policy: H.R. 2513 - Corporate Transparency Act of 2019, as Amended by Manager's Amendment

(House)
(Rep. Maloney, D-NY, and 10 cosponsors)

The Administration commends the bipartisan work undertaken to develop H.R. 2513, the Corporate Transparency Act of 2019. This legislation would require corporations and limited liability companies in the United States to disclose their beneficial owners, a measure that will help prevent malign actors from leveraging anonymity to exploit these entities for criminal gain. It would also assist law enforcement in detecting and preventing illicit activity such as terrorist financing and money laundering. Additionally, this bill would substantially update the Bank Secrecy Act (BSA) for the first time since 2001. These reforms will modernize financial institutions' compliance with anti-money laundering regulations, counter the financing of terrorism requirements, and close loopholes in existing law.

For these reasons, the Administration believes this legislation represents important progress in strengthening national security, supporting law enforcement, and clarifying regulatory requirements. Nevertheless, certain steps must be taken to improve H.R. 2513 as it moves through the legislative process. These include aligning the definition of "beneficial owner"to the Financial Crimes Enforcement Network's Customer Due Diligence Final Rule, protecting small businesses from unduly burdensome disclosure requirements, and providing for adequate access controls with respect to the information gathered under this bill's new disclosure regime. The Administration looks forward to continuing to engage in a bipartisan fashion with the House and Senate to address these important issues.