This year’s National Defense Authorization Act could include a major overhaul of the nation’s anti-money laundering regime including language that would curtail the use of anonymous shell companies. While House and Senate conferees are still negotiating the fiscal 2021 NDAA, the financial services-related provisions have been agreed to. The legislation would require corporate entities to disclose beneficial owners directly with FinCEN, taking OBL members out of the collection and reporting process. This would be a huge operational victory for the industry as well as an important step to allow law enforcement a more efficient method to crack down on financial criminals.
“This compromise comes after months of negotiations between banking trade associations including the OBL and the National Federation of Independent Businesses, a trade group representing the nation's small businesses. "We worked to find a compromise that took banks out of the beneficial ownerships process while not imposing a tough new reporting regime on small businesses," said OBL VP of External Relations Evan Kleymeyer.
"The OBL has been working on relieving the burden of reporting customers’ true owners since the rule was first announced in 2016," added Kleymeyer. "The inclusion of this language in the NDAA is the result of lengthy OBL advocacy efforts."
As recently as last week, the OBL sent a letter to the members of the Ohio delegation appointed to the conference committee. The House and Senate will now negotiate the rest of the provisions and gain the support of President Trump to sign the bill.