,,ii #aacth ,,congress #ast ,session ,s4 #adfe ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #a1 #bjac ,mr4 ,levin 7for himself1 ,mr4 ,grassley1 ,mrs4 ,feinstein1 and ,mr4 ,harkin7 introduced the following bill2 which was read twice and referred to the ,committee on the ,judiciary ,a ,,bill ,to ensure that persons who form corporations in the ,united ,states disclose the beneficial owners of those corporations1 in order to prevent the formation of corporations with hidden owners1 stop the misuse of ,united ,states corporations by wrongdoers1 and assist law enforcement in detecting1 preventing1 and punishing terrorism1 money laundering1 tax evasion1 and other criminal and civil misconduct involving ,united ,states corporations1 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 ,terrorists and other 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 support terrorist organizations1 drug trafficking organizations1 and international organized crime groups1 as well as commit misconduct affecting interstate and international commerce such as trafficking in illicit drugs1 illegal arms trafficking1 money laundering1 tax evasion1 ,internet-based fraud1 securities fraud1 financial fraud1 intellectual property crimes1 and acts of corruption4 7#e7 ,among those who have abused ,state incorporation procedures is ,victor ,bout1 a ,russian arms dealer who used at least #ab companies incorporated in ,texas1 ,florida1 and ,delaware to carry out his activities1 and has been convicted1 in part1 for conspiring to sell weapons to a terrorist organization trying to kill citizens of the ,united ,states and ,federal officers and employees4 7#f7 ,law enforcement efforts to investigate corporations and limited liability companies suspected of wrongdoing 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 the ,government ,accountability ,office1 and others4 7#g7 ,in ,july #bjjf1 a leading international anti-money laundering and anti-terrorist financing organization1 the ,financial ,action ,task ,force on ,money ,laundering 7in this section referred to as ,,fatf71 of which the ,united ,states is a member1 issued a report that criticized 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#h7 ,in response to the ,,fatf report and to strengthen measures to protect homeland security1 ,federal officials have repeatedly urged the ,states to improve their formation practices by obtaining beneficial ownership information for the corporations and limited liability companies formed under the laws of such ,states4 ,but the ,states continue to form millions of corporations with hidden owners4 7#i7 ,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#aj7 ,dozens of ,internet websites highlight the anonymity of beneficial owners allowed under the formation 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 inviting terrorists and other wrongdoers to form entities within the ,united ,states4 7#aa7 ,in contrast to practices in the ,united ,states1 all #bh countries in the ,european ,union are already required to have formation agents identify the beneficial owners of the corporations formed by those agents under the laws of those countries4 7#ab7 ,to reduce the vulnerability of the ,united ,states to wrongdoing by ,united ,states corporations and limited liability companies with hidden owners1 protect interstate and international commerce from terrorists and other criminals misusing ,united ,states corporations and limited liability companies1 strengthen law enforcement investigations of suspect corporations and limited liability companies1 set minimum standards for and level the playing field among ,state formation practices1 and bring the ,united ,states into compliance with international anti-money laundering and anti-terrorist financing 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 ,part ,e of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh 7#db ,u4,s4,c4 #cgej et seq47 is amended by adding at the end the following3 #d ,transparent incorporation practices #eca4 ,transparent incorporation practices 7a7 ,incorporation systems 7#a7 ,in general ,to protect the ,united ,states from the misuse affecting interstate or foreign commerce of corporations and limited liability companies with hidden owners1 each ,state that receives funding under subpart #a shall1 not later than #c years after the date of enactment of this subpart1 use an incorporation system that meets the following requirements3 7,a7 ,identification of beneficial owners ,except as provided in paragraphs 7#b7 and 7#d71 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 identifies each beneficial owner by name1 current residential or business street address1 and a unique identifying number from a nonexpired passport issued by the ,united ,states or a nonexpired drivers license or identification card issued by a ,state2 7ii7 if any beneficial owner exercises control over the corporation or limited liability company through another legal entity1 such as a corporation1 partnership1 or trust1 identifies each such legal entity and each such beneficial owner who will use that entity to exercise control over the corporation or limited liability company2 and 7iii7 if the applicant is not a 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 submit to the ,state an updated list of the beneficial owners of the corporation or limited liability company and the information described in subparagraph 7,a7 for each such beneficial owner not later than #fj days after the date of any change in the beneficial owners of the corporation or limited liability company2 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 the 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 civil1 criminal1 or administrative 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 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 7iii7 a written request made by the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury4 7,e7 ,no bearer share corporations ,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 ,to meet the requirements under this section1 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 section2 and 7ii7 a certification by the licensed formation agent that the licensed formation agent has possession of the information required under this section and will maintain the information in the ,state licensing the licensed formation agent in accordance with this section4 7,b7 ,states described ,a ,state described in this subparagraph is a ,state that-- 7i7 receives funding under subpart #a2 and 7ii7 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 in accordance with this section 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 within #fj days-- 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 shall1 within the #fj-;day period specified under clause 7i71 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 section 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 ,an incorporation system described in paragraph 7#a7 shall require that an application for an entity described in clause 7i7 or 7ii7 of subsection 7d77#b77;,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 section 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#b77;,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#b77;,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 date on which a ,state begins requiring beneficial ownership information in compliance 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 of 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#b77;,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#b77;,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 with an ownership interest ,as part of the beneficial ownership information required under subsection 7a77#a71 neither an applicant seeking to form a corporation or limited liability company nor a corporation or limited liability company providing updated information is required to identify the beneficial owners of any entity that qualifies as an exempt entity under subsection 7d77#b77;,b74 7b7 ,penalties 7#a7 ,in general ,it shall be unlawful for any person to affect interstate or foreign commerce by failing to comply with this subpart by-- 7,a7 knowingly providing1 or attempting to provide1 false or fraudulent beneficial ownership information1 including a false or fraudulent identifying photograph1 to a ,state or formation agent2 7,b7 willfully failing to provide complete or updated beneficial ownership information to a ,state or formation agent2 7,c7 knowingly disclosing the existence of a subpoena1 summons1 or other request for beneficial ownership information1 except-- 7i7 to the extent necessary to fulfill the authorized request2 or 7ii7 as authorized by the entity that issued the subpoena1 summons1 or other request2 or 7,d7 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 7c7 ,rules ,to carry out this subpart1 the ,attorney ,general of the ,united ,states1 the ,secretary of ,homeland ,security1 and the ,secretary of the ,treasury may issue joint guidance or a joint rule to clarify application of the definitions under subsection 7d7 or to specify how to verify beneficial ownership or other identification information provided under this section1 including under subsection 7a77#c74 ,failure to issue any such guidance or rule shall not delay the effective date of the requirements under this subpart4 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,c7 ,anti-abuse rule ,the exceptions under subparagraph 7,b7 shall not apply if used for the purpose of evading1 circumventing1 or abusing the provisions of subparagraph 7,a7 or subsection 7a74 7#b7 ,corporation2 limited liability company 7,a7 ,in general ,subject to subparagraph 7,b71 the terms corporation and limited liability company-- 7i7 have the meanings given such terms under the laws of the applicable ,state2 and 7ii7 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 ,state4 7,b7 ,exempt entities ,subject to subsection 7a77#d71 the terms corporation and limited liability company do not include an entity that-- 7i7 is-- 7,i7 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 7,,ii7 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 under the laws of the ,united ,states1 or by an international organization of which the ,united ,states is a member2 7,,iii7 a depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7,,iv7 a credit union 7as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb772 7,v7 a bank holding company 7as defined in section #b of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda772 7,,vi7 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 ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gho72 7,,vii7 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 7,,viii7 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-#b7aa7771 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 7,,ix7 an insurance company 7as defined in section #b of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#b772 7,x7 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 7,,xi7 a public accounting firm registered in accordance with section #ajb of the ,sarbanes-,oxley ,act 7#ae ,u4,s4,c4 #gbab72 7,,xii7 a public utility that provides telecommunications service1 electrical power1 natural gas1 or water and sewer services within the ,united ,states2 7,,xiii7 a church1 a charity1 or a nonprofit entity that is described in sections #eja7;c71 #ebg1 or #didg7;a77#a7 of the ,internal ,revenue ,code of #aihf1 has not been denied tax exempt status1 and is required to and has filed the most recently due annual information return with the ,internal ,revenue ,service2 7,,xiv7 any business concern that-- 7aa7 employs more than #bj employees on a full-time basis in the ,united ,states2 7bb7 files income tax returns in the ,united ,states demonstrating more than #e1jjj1jjj in gross receipts or sales2 and 7cc7 has an operating presence at a physical location within the ,united ,states2 or 7,,xv7 any corporation or limited liability company which is owned1 in whole or in substantial part1 by an entity described in subclause 7,i71 7,,ii71 7,,iii71 7,,iv71 7,v71 7,,vi71 7,,vii71 7,,viii71 7,,ix71 7,x71 7,,xi71 7,,xii71 7,,xiii71 or 7,,xiv72 or 7ii7 is within any class of business concerns which the ,attorney ,general of the ,united ,states1 the ,secretary of ,homeland ,security1 and the ,secretary of the ,treasury jointly determine in writing1 upon the request of a ,state1 and through an order1 guidance1 or rule 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 criminal or civil misconduct4 7#c7 ,formation agent ,the term formation agent means a person who1 for compensation1 acts on behalf of another person to form1 or assist in the formation1 of a corporation or limited liability company under the laws of a ,state4 4 7b7 ,funding authorization 7#a7 ,in general ,to carry out section #eca of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh1 as added by this ,act1 and to protect the ,united ,states against the misuse affecting interstate or foreign commerce of corporations or limited liability companies with hidden owners1 during the #c-year period beginning on the date of enactment of this ,act1 funds shall be made available to each ,state 7as that term is defined under section #ija7;a77#b7 of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh 7#db ,u4,s4,c4 #cgia7;a77#b7771 to pay reasonable costs to comply with the requirements of such section #eca from one or more of the following sources3 7,a7 ,upon written request by a ,state1 and without further appropriation1 the ,attorney ,general of the ,united ,states shall make available or transfer to the ,state funds from 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,b7 ,upon written request by a ,state1 after consultation with the ,attorney ,general of the ,united ,states1 and without further appropriation1 the ,secretary of the ,treasury shall make available or transfer to the ,state funds from unobligated balances described in section #igjc7;g77#d77;,b7 of title #ca1 ,united ,states ,code1 in the ,department of the ,treasury ,forfeiture ,fund4 7#b7 ,eligible costs ,the ,attorney ,general and ,secretary of the ,treasury1 in their sole discretion1 shall determine what costs are reasonable for purposes of paragraph 7#a71 taking into account the maximum amount of funds available for distribution to ,states under paragraph 7#c74 7#c7 ,maximum amounts 7,a7 ,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#a77;,a74 7,b7 ,department of the ,treasury ,the ,secretary of the ,treasury may not make available to ,states a total of more than #cj1jjj1jjj under paragraph 7#a77;,b74 7#d7 ,funding availability ,the amounts available to be provided to1 and any amounts provided to1 a ,state under paragraph 7#a7 shall be exempt from1 and shall not be reduced under1 any order under section #bea;,a of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ija;a71 including the order for fiscal year #bjad issued by the ,president on ,april #aj1 #bjac4 7c7 ,state compliance report ,nothing in this ,act or an amendment made by this ,act authorizes the ,attorney ,general of the ,united ,states to withhold from a ,state any funding otherwise available to the ,state under subpart #a of part ,e of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh 7#db ,u4,s4,c4 #cgej et seq47 because of a failure by that ,state to comply with subpart #d of part ,e of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh1 as added by this ,act4 ,not later than #db months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to the ,committee on the ,judiciary of the ,senate and the ,committee on the ,judiciary of the ,house of ,representatives a report identifying which ,states are in compliance with subpart #d of part ,e of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh and1 for any ,state not in compliance1 what measures must be taken by that ,state to achieve compliance with such subpart #d4 7d7 ,effect on ,state law 7#a7 ,in general ,this ,act and the amendments made by this ,act do not supersede1 alter1 or affect any statute1 regulation1 order1 or interpretation in effect in any ,state1 except where a ,state has elected to receive funding from the ,department of ,justice under subpart #a of part ,e of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh 7#db ,u4,s4,c4 #cgej et seq471 and then only to the extent that such ,state statute1 regulation1 order1 or interpretation is inconsistent with this ,act or an amendment made by this ,act4 7#b7 ,not inconsistent ,a ,state statute1 regulation1 order1 or interpretation is not inconsistent with this ,act or an amendment made by this ,act if such statute1 regulation1 order1 or interpretation-- 7,a7 requires additional information1 more frequently updated information1 or additional measures to verify information related to a corporation1 limited liability company1 or beneficial owner1 than is specified under this ,act or an amendment made by this ,act2 or 7,b7 imposes additional limits on public access to the beneficial ownership information obtained by the ,state than is specified under this ,act or an amendment made by this ,act4 7#c7 ,state records ,nothing in this ,act or the amendments made by this ,act limits the authority of a ,state1 by statute or otherwise1 to disclose or to not disclose to the public all or any portion of the beneficial ownership information provided to the ,state under subpart #d of part ,e of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh1 as added by this ,act4 7#d7 ,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 subpart #d of part ,e of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh1 as added by this ,act4 7e7 ,federal contractors ,not later than the first day of the first full fiscal year beginning at least #a year after the date of 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 subpart #d of part ,e of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh1 as added by this ,act1 to provide the information required to be disclosed under such subpart #d 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 #d4 ,anti-money laundering and anti-terrorist financing obligations of formation agents 7a7 ,anti-,money laundering and ,anti-,terrorist financing obligations of formation agents ,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 engaged in the business of forming corporations or limited liability companies2 or 4 7b7 ,deadline for implementing 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 ,secretary of ,homeland ,security and the ,attorney ,general of the ,united ,states1 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 section1 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 engaged in the business of forming a corporation or limited liability company-- 7,a7 any government agency2 and 7,b7 any attorney or law firm that uses a paid formation agent operating within the ,united ,states to form the corporation or limited liability company4 #e4 ,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 ,committee on the ,judiciary of the ,senate and the ,committee on the ,judiciary of the ,house of ,representatives 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 charitable organizations1 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 charitable organizations1 or other legal entities under the laws of the ,state to provide information about the beneficial owners 7as that term is defined in section #eca of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh1 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 charitable organizations1 or other legal entities-- 7,a7 raises concerns about the involvement of such entities in terrorism1 money laundering1 tax evasion1 securities fraud1 trafficking in illicit drugs1 or other criminal or civil 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 partnerships1 trusts1 charitable organizations1 or other legal entities 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 ,committee on the ,judiciary of the ,senate and the ,committee on the ,judiciary of the ,house of ,representatives 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 abuses and other civil and criminal misconduct4