This week, the U.S. House of Representatives passed H.R. 2315, the Corporate Transparency Act of 2019 with bipartisan support by a vote of 249-173. The anti-money laundering (AML) legislation is designed to stop the formation of anonymous shell companies created under state law that are often used by bad actors to launder money or to commit other illicit financial crimes.
The legislation requires corporations and limited liability companies to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of the Treasury, when an entity is formed under state law. The beneficial ownership federal database will be maintained by FinCEN and will be accessed only by regulators and law enforcement. The legislation must still be considered by the U.S. Senate and signed by the President before it can become law, but this type of reform has cleared a major hurdle in the House.
Anti-money laundering reforms, such as the disclosure of beneficial ownership information and additional reporting by law enforcement and FinCEN to Congress on the effectiveness of various AML protections, are top bipartisan priorities for lawmakers in both the House and Senate.
NAR will continue monitoring anti-money laundering reform efforts in Congress and by the Administration. Stay tuned to www.nar.realtor/moneylaundering for the latest updates.