Us Congress House Bill HB3829

Us Congress 2025-2026 Regular Session

• Introduced: 6/6/25
• Refer: 6/6/25

Caption

FinCEN–SBA Coordination on Beneficial Ownership Registration Act

Impact

If enacted, HB 3829 would require both FinCEN and the SBA to collaboratively engage with small business reporting companies to improve compliance with beneficial ownership disclosure laws. The legislation emphasizes the need for federal standards in filing practices and aims to streamline these processes for reporting companies while protecting national security interests. This could potentially impact state laws and practices by enforcing stricter adherence to federal standards, potentially shifting the compliance requirements for local entities.

Summary

House Bill 3829, titled the 'FinCEN–SBA Coordination on Beneficial Ownership Registration Act', seeks to enhance coordination between the Financial Crimes Enforcement Network (FinCEN) and the Small Business Administration (SBA) through a formal memorandum of understanding. The goal of this coordination is to ensure the effective dissemination of information related to beneficial ownership requirements. This is particularly important in the fight against illicit activities, including money laundering and terrorism financing, by making ownership structures of corporations and limited liability companies more transparent.

Contention

Some concerns surrounding the implementation of HB 3829 center on the potential burdens it may place on small businesses, particularly regarding the compliance costs and complexity associated with following new federal guidelines. Critics may argue that while transparency is vital to combat financial crimes, excessive regulatory requirements could hinder the operational flexibility of small businesses. Balancing national security interests with the need for a conducive business environment will be a crucial point of debate among legislators.