,i #aacth ,,congress #ast ,session ,h4 ,r4 #ccca ,,in ,,the ,,house ,,of ,,representatives ,october #bc1 #bjac ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york 7for herself1 ,ms4 ,waters1 ,ms4 ,moore1 and ,mr4 ,capuano7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to amend title #ca1 ,united ,states ,code1 to ensure that persons who form corporations or limited liability companies in the ,united ,states disclose the beneficial owners of those corporations or limited liability companies1 in order to prevent wrongdoers from exploiting ,united ,states corporations and limited liability companies for criminal gain1 to assist law enforcement in detecting1 preventing1 and punishing terrorism1 money laundering1 and other misconduct involving ,united ,states corporations and limited liability companies1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,incorporation ,transparency and ,law ,enforcement ,assistance ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,nearly #b1jjj1jjj corporations and limited liability companies are being formed under the laws of the ,states each year4 7#b7 ,very few ,states obtain meaningful information about the beneficial owners of the corporations and limited liability companies formed under their laws4 7#c7 ,a person forming a corporation or limited liability company within the ,united ,states typically provides less information to the ,state of incorporation than is needed to obtain a bank account or driver's license and typically does not name a single beneficial owner4 7#d7 ,criminals have exploited the weaknesses in ,state formation procedures to conceal their identities when forming corporations or limited liability companies in the ,united ,states1 and have then used the newly created entities to commit crimes affecting interstate and international commerce such as terrorism1 drug trafficking1 money laundering1 tax evasion1 securities fraud1 financial fraud1 and acts of foreign corruption4 7#e7 ,law enforcement efforts to investigate corporations and limited liability companies suspected of committing crimes have been impeded by the lack of available beneficial ownership information1 as documented in reports and testimony by officials from the ,department of ,justice1 the ,department of ,homeland ,security1 the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury1 the ,internal ,revenue ,service1 and the ,government ,accountability ,office1 and others4 7#f7 ,in ,july #bjjf1 a leading international anti-money laundering organization1 the ,financial ,action ,task ,force on ,money ,laundering 7in this section referred to as the ,,fatf71 of which the ,united ,states is a member1 issued a report that criticizes the ,united ,states for failing to comply with a ,,fatf standard on the need to collect beneficial ownership information and urged the ,united ,states to correct this deficiency by ,july #bjjh4 7#g7 ,in response to the ,,fatf report1 the ,united ,states has repeatedly urged the ,states to strengthen their incorporation practices by obtaining beneficial ownership information for the corporations and limited liability companies formed under the laws of such ,states4 7#h7 ,many ,states have established automated procedures that allow a person to form a new corporation or limited liability company within the ,state within #bd hours of filing an online application1 without any prior review of the application by a ,state official4 ,in exchange for a substantial fee1 #b ,states will form a corporation within #a hour of a request4 7#i7 ,dozens of ,internet ,web sites highlight the anonymity of beneficial owners allowed under the incorporation practices of some ,states1 point to those practices as a reason to incorporate in those ,states1 and list those ,states together with offshore jurisdictions as preferred locations for the formation of new corporations1 essentially providing an open invitation to criminals and other wrongdoers to form entities within the ,united ,states4 7#aj7 ,in contrast to practices in the ,united ,states1 all #bh countries in the ,european ,union are required to have formation agents identify the beneficial owners of the corporations formed under the laws of the country4 7#aa7 ,to reduce the vulnerability of the ,united ,states to wrongdoing by ,united ,states corporations and limited liability companies with hidden owners1 to protect interstate and international commerce from criminals misusing ,united ,states corporations and limited liability companies1 to strengthen law enforcement investigations of suspect corporations and limited liability companies1 to set minimum standards for and level the playing field among ,state incorporation practices1 and to bring the ,united ,states into compliance with its international anti-money laundering standards1 ,federal legislation is needed to require the ,states to obtain beneficial ownership information for the corporations and limited liability companies formed under the laws of such ,states4 #c4 ,transparent incorporation practices 7a7 ,transparent incorporation practices 7#a7 ,in general ,chapter #ec of title #ca1 ,united ,states ,code1 is amended by inserting after section #eccb the following new section3 #eccc4 ,transparent incorporation practices 7a7 ,reporting requirements 7#a7 ,in general ,not later than the beginning of fiscal year #bjaf1 the ,secretary of the ,treasury shall issue regulations requiring each corporation and limited liability company formed in a ,state that does not have a formation system described under subsection 7b7 to file with the ,secretary such information as the corporation or limited liability company would be required to provide the ,state if such ,state had a formation system described under subsection 7b74 7#b7 ,disclosure of beneficial ownership information ,beneficial ownership information reported to the ,secretary of the ,treasury pursuant to paragraph 7#a7 shall be provided by the ,secretary of the ,treasury upon receipt of-- 7,a7 a civil or criminal subpoena or summons from a ,state agency1 ,federal agency1 or congressional committee or subcommittee requesting such information2 7,b7 a written request made by a ,federal agency on behalf of another country under an international treaty1 agreement1 or convention1 or an order under section #ceab of title #ah1 ,united ,states ,code1 or section #aghb of title #bh1 ,united ,states ,code1 issued in response to a request for assistance from a foreign country2 or 7,c7 a written request made by the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury4 7b7 ,formation system 7#a7 ,in general ,with respect to a ,state1 a formation system is described under this subsection if it meets the following requirements3 7,a7 ,identification of beneficial owners ,except as provided in paragraphs 7#b7 and 7#d71 and subject to paragraph 7#c71 each applicant to form a corporation or limited liability company under the laws of the ,state is required to provide to the ,state during the formation process a list of the beneficial owners of the corporation or limited liability company that-- 7i7 except as provided in subparagraph 7,f71 identifies each beneficial owner by-- 7,i7 name2 7,,ii7 current residential or business street address2 and 7,,iii7 a unique identifying number from a non-expired passport issued by the ,united ,states or a non-expired drivers license issued by a ,state2 and 7ii7 if the applicant is not the beneficial owner1 provides the identification information described in clause 7i7 relating to the applicant4 7,b7 ,updated information ,for each corporation or limited liability company formed under the laws of the ,state-- 7i7 the corporation or limited liability company is required by the ,state to update the list of the beneficial owners of the corporation or limited liability company by providing the information described in subparagraph 7,a7 to the ,state not later than #fj days after the date of any change in the list of beneficial owners or the information required to be provided relating to each beneficial owner2 7ii7 in the case of a corporation or limited liability company formed or acquired by a formation agent and retained by the formation agent as a beneficial owner for transfer to another person1 the formation agent is required by the ,state to submit to the ,state an updated list of the beneficial owners and the information described in subparagraph 7,a7 for each such beneficial owner not later than #aj days after date on which the formation agent transfers the corporation or limited liability company to another person2 and 7iii7 the corporation or limited liability company is required by the ,state to submit to the ,state an annual filing containing the list of the beneficial owners of the corporation or limited liability company and the information described in subparagraph 7,a7 for each such beneficial owner4 7,c7 ,retention of information ,beneficial ownership information relating to each corporation or limited liability company formed under the laws of the ,state is required to be maintained by the ,state until the end of the #e-year period beginning on the date that the corporation or limited liability company terminates under the laws of the ,state4 7,d7 ,information requests ,beneficial ownership information relating to each corporation or limited liability company formed under the laws of the ,state shall be provided by the ,state upon receipt of-- 7i7 a civil or criminal subpoena or summons from a ,state agency1 ,federal agency1 or congressional committee or subcommittee requesting such information2 7ii7 a written request made by a ,federal agency on behalf of another country under an international treaty1 agreement1 or convention1 or section #aghb of title #bh1 ,united ,states ,code2 or 7iii7 a written request made by the ,financial ,crimes ,enforcement ,network4 7,e7 ,no bearer share corporations or limited liability companies ,a corporation or limited liability company formed under the laws of the ,state may not issue a certificate in bearer form evidencing either a whole or fractional interest in the corporation or limited liability company4 7#b7 ,states that license formation agents 7,a7 ,in general ,notwithstanding paragraph 7#a71 a ,state described in subparagraph 7,b7 may permit an applicant to form a corporation or limited liability company under the laws of the ,state1 or a corporation or limited liability company formed under the laws of the ,state1 to provide the required information to a licensed formation agent residing in the ,state1 instead of to the ,state directly1 if the application under paragraph 7#a77;,a7 or the update under paragraph 7#a77;,b7 contains-- 7i7 the name1 current business address1 contact information1 and licensing number of the licensed formation agent that has agreed to maintain the information required under this subsection2 and 7ii7 a certification by the licensed formation agent that the licensed formation agent has possession of the information required under this subsection and will maintain the information in the ,state licensing the licensed formation agent in accordance with ,state law4 7,b7 ,states described ,a ,state described in this subparagraph is a ,state that maintains a formal licensing system for formation agents that requires a formation agent to register with the ,state1 meet standards for fitness and honesty1 maintain a physical office and records within the ,state1 undergo regular monitoring1 and be subject to sanctions for noncompliance with ,state requirements4 7,c7 ,licensed formation agent duties ,a licensed formation agent that receives beneficial ownership information under ,state law in accordance with this paragraph shall-- 7i7 maintain the information in the ,state in which the corporation or limited liability company is being or has been formed in the same manner as required for ,states under paragraph 7#a77;,c72 7ii7 provide the information under the same circumstances as required for ,states under paragraph 7#a77;,d72 and 7iii7 perform the duties of a formation agent under paragraph 7#c74 7,d7 ,termination of relationship 7i7 ,in general ,except as provided in clause 7ii71 a licensed formation agent that receives beneficial ownership information relating to a corporation or limited liability company under ,state law in accordance with this paragraph and that resigns1 dissolves1 or otherwise ends a relationship with the corporation or limited liability company shall promptly-- 7,i7 notify the ,state in writing that the licensed formation agent has resigned or ended the relationship2 and 7,,ii7 transmit all beneficial ownership information relating to the corporation or limited liability company in the possession of the licensed formation agent to the licensing ,state4 7ii7 ,exception ,if a licensed formation agent receives written instructions from a corporation or limited liability company1 the licensed formation agent may transmit the beneficial ownership information relating to the corporation or limited liability company to another licensed formation agent that is within the same ,state and has agreed to maintain the information in accordance with this section4 7iii7 ,notice to ,state ,if a licensed formation agent provides beneficial ownership information to another licensed formation agent under clause 7ii71 the licensed formation agent providing the information shall promptly notify in writing the ,state under the laws of which the corporation or limited liability company is formed of the identity of the licensed formation agent receiving the information4 7#c7 ,certain beneficial owners ,if an applicant to form a corporation or limited liability company or a beneficial owner1 officer1 director1 or similar agent of a corporation or limited liability company who is required to provide identification information under this subsection does not have a nonexpired passport issued by the ,united ,states or a nonexpired drivers license or identification card issued by a ,state1 each application described in paragraph 7#a77;,a7 and each update described in paragraph 7#a77;,b7 shall include a certification by a formation agent residing in the ,state that the formation agent-- 7,a7 has obtained for each such person a current residential or business street address and a legible and credible copy of the pages of a nonexpired passport issued by the government of a foreign country bearing a photograph1 date of birth1 and unique identifying information for the person2 7,b7 has verified the name1 address1 and identity of each such person2 7,c7 will provide the information described in subparagraph 7,a7 and the proof of verification described in subparagraph 7,b7 upon request under the same circumstances as required for ,states under paragraph 7#a77;,d72 and 7,d7 will retain the information and proof of verification under this paragraph in the ,state in which the corporation or limited liability company is being or has been formed until the end of the #e-year period beginning on the date that the corporation or limited liability company terminates under the laws of the ,state4 7#d7 ,exempt entities 7,a7 ,in general ,a formation system described in paragraph 7#a7 shall require that an application for an entity described in subparagraph 7,c7 or 7,d7 of subsection 7d77#b7 that is proposed to be formed under the laws of a ,state and that will be exempt from the beneficial ownership disclosure requirements under this subsection shall include in the application a certification by the applicant1 or a prospective officer1 director1 or similar agent of the entity-- 7i7 identifying the specific provision of subsection 7d77#b7 under which the entity proposed to be formed would be exempt from the beneficial ownership disclosure requirements under paragraphs 7#a71 7#b71 and 7#c72 7ii7 stating that the entity proposed to be formed meets the requirements for an entity described under such provision of subsection 7d77#b72 and 7iii7 providing identification information for the applicant or prospective officer1 director1 or similar agent making the certification in the same manner as provided under paragraph 7#a7 or 7#c74 7,b7 ,existing entities ,on and after the date that is #b years after the effective date of the amendments to the formation system of a ,state made to comply with this section1 an entity formed under the laws of the ,state before such effective date shall be considered to be a corporation or limited liability company for purposes of1 and shall be subject to the requirements of1 this subsection unless an officer1 director1 or similar agent of the entity submits to the ,state a certification-- 7i7 identifying the specific provision of subsection 7d77#b7 under which the entity is exempt from the requirements under paragraphs 7#a71 7#b71 and 7#c72 7ii7 stating that the entity meets the requirements for an entity described under such provision of subsection 7d77#b72 and 7iii7 providing identification information for the officer1 director1 or similar agent making the certification in the same manner as provided under paragraph 7#a7 or 7#c74 7,c7 ,exempt entities having ownership interest ,if an entity described in subparagraph 7,c7 or 7,d7 of subsection 7d77#b7 has or will have an ownership interest in a corporation or limited liability company formed or to be formed under the laws of a ,state1 the applicant1 corporation1 or limited liability company in which the entity has or will have the ownership interest shall provide the information required under this subsection relating to the entity1 except that the entity shall not be required to provide information regarding any natural person who has an ownership interest in1 exercises substantial control over1 or receives substantial economic benefits from the entity4 7c7 ,penalties 7#a7 ,in general ,it shall be unlawful for-- 7,a7 any person to affect interstate or foreign commerce by-- 7i7 knowingly providing1 or attempting to provide1 false or fraudulent beneficial ownership information1 including a false or fraudulent identifying photograph1 to a ,state or licensed formation agent under ,state law in accordance with this section2 7ii7 willfully failing to provide complete or updated beneficial ownership information to a ,state or licensed formation agent under ,state law in accordance with this section2 or 7iii7 knowingly disclosing the existence of a subpoena1 summons1 or other request for beneficial ownership information1 except-- 7,i7 to the extent necessary to fulfill the authorized request2 or 7,,ii7 as authorized by the entity that issued the subpoena1 summons1 or other request2 or 7,b7 in the case of a formation agent1 knowingly failing to obtain or maintain credible1 legible1 and updated beneficial ownership information1 including any required identifying photograph4 7#b7 ,civil and criminal penalties ,in addition to any civil or criminal penalty that may be imposed by a ,state1 any person who violates paragraph 7#a7-- 7,a7 shall be liable to the ,united ,states for a civil penalty of not more than #aj1jjj2 and 7,b7 may be fined under title #ah1 ,united ,states ,code1 imprisoned for not more than #c years1 or both4 7d7 ,definitions ,for the purposes of this section3 7#a7 ,beneficial owner 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term beneficial owner means a natural person who1 directly or indirectly-- 7i7 exercises substantial control over a corporation or limited liability company2 or 7ii7 has a substantial interest in or receives substantial economic benefits from the assets of a corporation or limited liability company4 7,b7 ,exceptions ,the term beneficial owner shall not include-- 7i7 a minor child2 7ii7 a person acting as a nominee1 intermediary1 custodian1 or agent on behalf of another person2 7iii7 a person acting solely as an employee of a corporation or limited liability company and whose control over or economic benefits from the corporation or limited liability company derives solely from the employment status of the person2 7iv7 a person whose only interest in a corporation or limited liability company is through a right of inheritance1 unless the person also meets the requirements of subparagraph 7,a72 or 7v7 a creditor of a corporation or limited liability company1 unless the creditor also meets the requirements of subparagraph 7,a74 7#b7 ,corporation2 limited liability company ,the terms corporation and limited liability company-- 7,a7 have the meanings given such terms under the laws of the applicable ,state2 7,b7 include any non-,united ,states entity eligible for registration or registered to do business as a corporation or limited liability company under the laws of the applicable ,state2 7,c7 do not include any entity that is1 and discloses in the application by the entity to form under the laws of the ,state or1 if the entity was formed before the date of the enactment of this section1 in a filing with the ,state under ,state law-- 7i7 a business concern that is an issuer of a class of securities registered under section #ab of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gha7 or that is required to file reports under section #ae7;d7 of that ,act 7#ae ,u4,s4,c4 #gho7d772 7ii7 a business concern constituted or sponsored by a ,state1 a political subdivision of a ,state1 under an interstate compact between #b or more ,states1 by a department or agency of the ,united ,states1 or under the laws of the ,united ,states2 7iii7 a depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7iv7 a credit union 7as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb772 7v7 a bank holding company 7as defined in section #b of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda772 7vi7 a broker or dealer 7as defined in section #c of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c77 that is registered under section #ae of the ,securities and ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gho72 7vii7 an exchange or clearing agency 7as defined in section #c of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c77 that is registered under section #f or #ag;,a of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;f and #ghq-#a72 7viii7 an investment company 7as defined in section #c of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#c77 or an investment advisor 7as defined in section #bjb7aa7 of the ,investment ,advisors ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#b7aa771 if the company or adviser is registered with the ,securities and ,exchange ,commission1 or has filed an application for registration which has not been denied1 under the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq47 or the ,investment ,advisor ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq472 7ix7 an insurance company 7as defined in section #b of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#b772 7x7 a registered entity 7as defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a771 or a futures commission merchant1 introducing broker1 commodity pool operator1 or commodity trading advisor 7as defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a77 that is registered with the ,commodity ,futures ,trading ,commission2 7xi7 a public accounting firm registered in accordance with section #ajb of the ,sarbanes-,oxley ,act 7#ae ,u4,s4,c4 #gbab72 7xii7 a public utility that provides telecommunications service1 electrical power1 natural gas1 or water and sewer services1 within the ,united ,states2 7xiii7 a church1 charity1 or nonprofit entity that is described in section #eja7;c71 #ebg1 or #didg7;a77#a7 of the ,internal ,revenue ,code of #aihf1 has not been denied tax exempt status1 and has filed the most recently due annual information return with the ,internal ,revenue ,service1 if required to file such a return2 7xiv7 any business concern that-- 7,i7 employs more than #bj employees on a full time basis in the ,united ,states2 7,,ii7 files income tax returns in the ,united ,states demonstrating more than #e1jjj1jjj in gross receipts or sales2 and 7,,iii7 has an operating presence at a physical office within the ,united ,states2 or 7xv7 any corporation or limited liability company formed and owned by an entity described in clause 7i71 7ii71 7iii71 7iv71 7v71 7vi71 7vii71 7viii71 7ix71 7x71 7xi71 7xii71 7xiii71 or 7xiv72 and 7,d7 do not include any individual business concern or class of business concerns which the ,secretary of the ,treasury1 with the written concurrence of the ,attorney ,general of the ,united ,states1 has determined in writing should be exempt from the requirements of subsection 7a71 because requiring beneficial ownership information from the business concern would not serve the public interest and would not assist law enforcement efforts to detect1 prevent1 or punish terrorism1 money laundering1 tax evasion1 or other misconduct4 7#c7 ,formation agent ,the term formation agent means a person who1 for compensation-- 7,a7 acts on behalf of another person to assist in the formation of a corporation or limited liability company under the laws of a ,state2 or 7,b7 purchases1 sells1 or transfers the public records that form a corporation or limited liability company4 4 7#b7 ,rulemaking ,to carry out this ,act and the amendments made by this ,act1 the ,secretary of the ,treasury1 in consultation with the ,secretary of ,homeland ,security and the ,attorney ,general of the ,united ,states1 may issue guidance or a rule to-- 7,a7 clarify the definitions under section #eccc7;d7 of title #ca1 ,united ,states ,code1 as added by paragraph 7#a72 and 7,b7 specify how to verify beneficial ownership information or other identification information for purposes of such section #eccc1 including whether the verification procedures specified in section #eccc7;b77#c7 should apply to all applicants under section #eccc7;b77#a7 or whether such verification process should require the notarization of signatures4 7#c7 ,conforming amendments ,title #ca1 ,united ,states ,code1 is amended-- 7,a7 in section #ecba7;a7-- 7i7 in paragraph 7#a71 by striking sections #ecad and #ecae each place it appears and inserting sections #ecad1 #ecae1 and #eccc2 and 7ii7 in paragraph 7#f71 by inserting 7except section #eccc7 after subchapter each place it appears2 and 7,b7 in section #ecbb1 by striking section #ecae or #ecbd each place it appears and inserting section #ecae1 #ecbd1 or #eccc4 7#d7 ,table of contents ,the table of contents of chapter #ec of title #ca1 ,united ,states ,code1 is amended by inserting after the item relating to section #eccb the following3 ,sec4 #eccc4 ,transparent incorporation practices4 4 7#e7 ,restrictions on public access ,a ,state may-- 7,a7 restrict public access to all or any portion of the beneficial ownership information provided to the ,state as described under section #eccb of title #ca1 ,united ,states ,code1 as added by this ,act2 and 7,b7 by statute1 regulation1 order1 or interpretation adopted or issued by the ,state after the date of enactment of this ,act1 provide for public access to all or any portion of such information4 7#f7 ,no duty of verification ,this ,act and the amendments made by this ,act do not impose any obligation on a ,state to verify the name1 address1 or identity of a beneficial owner whose information is submitted to such ,state under section #eccc of title #ca1 ,united ,states ,code1 as added by this ,act4 7b7 ,funding authorization 7#a7 ,in general ,to carry out section #eccc of title #ca1 ,united ,states ,code1 during the #c-year period beginning on the date of enactment of this ,act1 funds shall be made available to each ,state to pay reasonable costs relating to compliance with the requirements of such section4 7#b7 ,funding sources ,to protect the ,united ,states against the misuse of ,united ,states corporations and limited liability companies with hidden owners1 funds shall be provided to each ,state to carry out the purposes described in paragraph 7#a7 from one or more of the following sources3 7,a7 ,upon application by a ,state1 and without further appropriation1 the ,secretary of the ,treasury shall make available to the ,state unobligated balances described in section #igjc7;g77#d77;,b7 of title #ca1 ,united ,states ,code1 in the ,department of the ,treasury ,forfeiture ,fund established under section #igjc7;a7 of title #ca1 ,united ,states ,code4 7,b7 ,upon application by a ,state1 after consultation with the ,secretary of the ,treasury1 and without further appropriation1 the ,attorney ,general of the ,united ,states shall make available to the ,state excess unobligated balances 7as defined in section #ebd7;c77#h77;,d7 of title #bh1 ,united ,states ,code7 in the ,department of ,justice ,assets ,forfeiture ,fund established under section #ebd7;c7 of title #bh1 ,united ,states ,code4 7#c7 ,maximum amounts 7,a7 ,department of the ,treasury ,the ,secretary of the ,treasury may not make available to ,states a total of more than #cj1jjj1jjj under paragraph 7#b77;,a74 7,b7 ,department of ,justice ,the ,attorney ,general of the ,united ,states may not make available to ,states a total of more than #aj1jjj1jjj under paragraph 7#b77;,b74 7#d7 ,rulemaking ,not later than the end of the #ahj-;day period beginning on the date of the enactment of this ,act1 the ,secretary of the ,treasury and the ,attorney ,general shall1 jointly1 issue regulations setting forth the procedures for ,states to apply for funds under this subsection1 including determining which ,state measures should be funded to assess1 plan1 develop1 test1 or implement relevant policies1 procedures1 or system modifications4 7c7 ,compliance ,report ,nothing in this section or the amendments made by this section authorizes the ,secretary of the ,treasury to withhold from a ,state any funding otherwise available to the ,state because of a failure by that ,state to comply with section #eccc of title #ca1 ,united ,states ,code4 ,not later than the end of the #db-month period beginning on the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate a report-- 7#a7 identifying which ,states obtain beneficial ownership information as described in such section #eccc2 7#b7 with respect to each ,state that does not obtain such information1 whether corporations and limited liability companies formed under the laws of such ,state are in compliance with such section #eccc and providing the specified beneficial ownership information to the ,secretary of the ,treasury2 and 7#c7 whether the ,department of the ,treasury is in compliance with such section #eccc and1 if not1 what steps it must take to come into compliance with this section4 7d7 ,federal contractors ,not later than the first day of the first full fiscal year beginning at least one year after the date of the enactment of this ,act1 the ,administrator for ,federal ,procurement ,policy shall revise the ,federal ,acquisition ,regulation maintained under section #acjc7;a77#a7 of title #da1 ,united ,states ,code1 to require any contractor who is subject to the requirement to disclose beneficial ownership information under section #eccc of title #ca1 ,united ,states ,code1 to provide the information required to be disclosed under such section to the ,federal ,government as part of any bid or proposal for a contract with a value threshold in excess of the simplified acquisition threshold under section #acd of title #da1 ,united ,states ,code4 7e7 ,anti-,money laundering obligations of formation agents 7#a7 ,in general ,section #ecab7;a77#b7 of title #ca1 ,united ,states ,code1 is amended-- 7,a7 in subparagraph 7,y71 by striking or at the end2 7,b7 by redesignating subparagraph 7,z7 as subparagraph 7,,aa72 and 7,c7 by inserting after subparagraph 7,y7 the following3 7,z7 any person who1 for compensation-- 7i7 acts on behalf of another person to form1 or assist in formation of1 a corporation or limited liability company under the laws of a ,state2 or 7ii7 purchases1 sells1 or transfers the public records that form a corporation or limited liability company2 or 4 7#b7 ,deadline for anti-money laundering rule for formation agents 7,a7 ,proposed rule ,not later than #abj days after the date of enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with the ,attorney ,general of the ,united ,states and the ,commissioner of the ,internal ,revenue ,service1 shall publish a proposed rule in the ,federal ,register requiring persons described in section #ecab7;a77#b77,z7 of title #ca1 ,united ,states ,code1 as amended by this subsection1 to establish anti-money laundering programs under subsection 7h7 of section #ecah of that title4 7,b7 ,final rule ,not later than #bgj days after the date of enactment of this ,act1 the ,secretary of the ,treasury shall publish the rule described in this subsection in final form in the ,federal ,register4 7,c7 ,exclusions ,any rule promulgated under this subsection shall exclude from the category of persons involved in forming a corporation or limited liability company-- 7i7 any government agency2 and 7ii7 any attorney or law firm that uses a paid formation agent operating within the ,united ,states to form the corporation or limited liability company4 #d4 ,studies and reports 7a7 ,other legal entities ,not later than #b years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study and submit to the ,congress a report-- 7#a7 identifying each ,state that has procedures that enable persons to form or register under the laws of the ,state partnerships1 trusts1 or other legal entities1 and the nature of those procedures2 7#b7 identifying each ,state that requires persons seeking to form or register partnerships1 trusts1 or other legal entities under the laws of the ,state to provide information about the beneficial owners 7as that term is defined in section #eccc7;d77#a7 of title #ca1 ,united ,states ,code1 as added by this ,act7 or beneficiaries of such entities1 and the nature of the required information2 7#c7 evaluating whether the lack of available beneficial ownership information for partnerships1 trusts1 or other legal entities-- 7,a7 raises concerns about the involvement of such entities in terrorism1 money laundering1 tax evasion1 securities fraud1 or other misconduct2 and 7,b7 has impeded investigations into entities suspected of such misconduct2 and 7#d7 evaluating whether the failure of the ,united ,states to require beneficial ownership information for partnerships and trusts formed or registered in the ,united ,states has elicited international criticism and what steps1 if any1 the ,united ,states has taken or is planning to take in response4 7b7 ,effectiveness of incorporation practices ,not later than #e years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study and submit to the ,congress a report assessing the effectiveness of incorporation practices implemented under this ,act and the amendments made by this ,act in-- 7#a7 providing law enforcement agencies with prompt access to reliable1 useful1 and complete beneficial ownership information2 and 7#b7 strengthening the capability of law enforcement agencies to combat incorporation abuses1 civil and criminal misconduct1 and detect1 prevent1 or punish terrorism1 money laundering1 tax evasion1 or other misconduct4