Us Congress Senate Bill SB1995

Us Congress 2025-2026 Regular Session

• Introduced: 6/9/25
• Refer: 6/9/25

Caption

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.