FinCEN–SBA Coordination on Beneficial Ownership Registration Act
Impact
In the wake of increasing concerns about the potential misuse of anonymous corporate structures by malign actors, SB1995 directly impacts state laws by establishing a federal standard for beneficial ownership registration. This legislation is expected to align state practices with federal requirements, ultimately enforcing transparency in business ownership which is crucial in combating criminal activities. By ensuring that beneficial ownership information is collected and shared systematically, the bill supports law enforcement and intelligence efforts critical to national security.
Summary
SB1995, titled the 'FinCEN–SBA Coordination on Beneficial Ownership Registration Act', is designed to enhance the collaboration between the Financial Crimes Enforcement Network (FinCEN) and the Small Business Administration (SBA) to improve the dissemination of beneficial ownership information. The bill aims to create a memorandum of understanding between these two entities to facilitate better reporting and compliance with ownership regulations for small businesses, ensuring that illicit activities such as money laundering and tax fraud are curtailed. It represents a proactive shift towards more rigorous oversight of business entities formed in the United States.
Contention
However, the bill may face contention, particularly from small business advocates concerned about the burden of compliance and the potential for unintended consequences of increased regulation. Questions regarding the practicality of implementing new reporting requirements for small businesses could arise, especially regarding the capacity of smaller entities to manage the obligations outlined in this legislation without stifling their operations. The proposed measures to engage with and educate small businesses through outreach and support are essential components intended to mitigate these concerns.
To amend section 5336 of title 31, United States Code, to provide existing small businesses with an additional year to file beneficial ownership information, and for other purposes.
FinCEN Modernization Act of 2023 This bill requires the Financial Crimes Enforcement Network (FinCEN) to establish programs and perform research related to financial technology on topics such as machine learning, data analytics, and cryptocurrency. The bill allows FinCEN to enter into transactions and to accept gifts related to these objectives.
DOE and SBA Research ActThis bill requires the Department of Energy and the Small Business Administration to enter into an agreement to collaborate on research and development activities. These activities must include, as appropriate, small businesses.The agencies must report on any collaborative research achievements and potential opportunities to expand the technical capabilities of the agencies.
DOE and NSF Interagency Research ActThis bill provides statutory authority for a research and development partnership between the Department of Energy (DOE) and the National Science Foundation (NSF). Specifically, the bill requires DOE and NSF to enter into a memorandum of understanding to support cross-cutting and collaborative research and development that furthers the missions of both agencies. Through the partnership, DOE and NSF may conduct research in a variety of focus areas (e.g., artificial intelligence), promote multi-agency and cross-sector data sharing, support research infrastructure, and organize education and training initiatives. DOE and NSF must jointly report on their collaboration.