H.R. 3829: FinCEN–SBA Coordination on Beneficial Ownership Registration Act

This bill, known as the "FinCEN–SBA Coordination on Beneficial Ownership Registration Act," aims to enhance coordination between the Financial Crimes Enforcement Network (FinCEN) and the Small Business Administration (SBA) regarding beneficial ownership information. Here are the key elements of the bill:

Purpose

The primary purpose of this bill is to require FinCEN and the SBA to create a formal agreement to share essential information related to beneficial ownership registration. This is meant to help combat illegal activities such as money laundering and terrorism financing by ensuring that the ownership details of businesses are transparent and easily accessible.

Understanding Beneficial Ownership

Beneficial ownership refers to the individuals who ultimately own or control a company, even if their name is not listed as the owner. The bill acknowledges that people with malicious intent often conceal their ownership to engage in unlawful activities, which is why clear federal standards for tracking this information are necessary.

Key Actions Required

• Memorandum of Understanding: Within 90 days of the bill's enactment, the Director of FinCEN and the Administrator of the SBA must draft and sign a memorandum detailing how they will work together to disseminate beneficial ownership information.
• Outreach Activities: The agreement will involve outreach to reporting companies (those required to provide beneficial ownership information) and others involved with small businesses, ensuring they are informed about their obligations.
• Language Accessibility: The information must be available in English and Spanish, along with other languages deemed necessary.
• Public Awareness: The bill mandates the creation of resources to help small business owners understand their responsibilities and identify potential scams related to beneficial ownership reporting.
• Public Reporting: The Director and Administrator must provide regular reports to Congress outlining their activities, how many companies complied with ownership reporting, and the actions taken to assist those that did not.

Ongoing Coordination and Review

The Director and Administrator are required to meet every six months to evaluate the effectiveness of their collaboration, address compliance challenges, and analyze reasons for non-compliance. This ensures continuous improvement in the process of collecting and managing beneficial ownership information.

Reporting Requirements

Every month, the Director and the Administrator will submit reports to Congress detailing:

• The actions they have undertaken in the previous month to engage with companies that have not complied with beneficial ownership requirements.
• The estimated number of entities that received guidance or support from FinCEN or the SBA.
• The compliance rates of reporting companies.

Relevant Companies

None found.