,,ib ,union ,calendar ,no4 #ahj #aafth ,,congress #ast ,session ,h4 ,r4 #beac ,report ,no4 #aaf-bbg ,,in ,,the ,,house ,,of ,,representatives ,may #c1 #bjai ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york 7for herself1 ,mr4 ,king of ,new ,york1 and ,mr4 ,malinowski7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,october #h1 #bjai ,additional sponsors3 ,mr4 ,beyer1 ,mr4 ,cooper1 ,mr4 ,hastings1 ,mr4 ,meeks1 ,mr4 ,cleaver1 ,ms4 ,kaptur1 ,ms4 ,blunt ,rochester1 and ,mr4 ,sherman ,october #h1 #bjai ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,may #c1 #bjai ,a ,,bill ,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 ,corporate ,transparency ,act of #bjai4 #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 require 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 at the time 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 ,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 proliferation financing1 drug and human trafficking1 money laundering1 tax evasion1 counterfeiting1 piracy1 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 ,department of the ,treasury1 and the ,government ,accountability ,office1 and others4 7#f7 ,in ,july #bjjf1 the leading international antimoney laundering standard-setting body1 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 ,in ,december #bjaf1 ,,fatf issued another evaluation of the ,united ,states1 which found that little progress has been made over the last ten years to address this problem4 ,it identified the lack of timely access to adequate1 accurate and current beneficial ownership information as a fundamental gap in ,united ,states efforts to combat money laundering and terrorist finance4 7#g7 ,in response to the #bjjf ,,fatf report1 the ,united ,states has urged the ,states to obtain beneficial ownership information for the corporations and limited liability companies formed under the laws of such ,states4 7#h7 ,in contrast to practices in the ,united ,states1 all #bh countries in the ,european ,union are required to have corporate registries that include beneficial ownership information4 7#i7 ,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 a clear1 universal standard for ,state incorporation practices1 and to bring the ,united ,states into compliance with international anti-money laundering standards1 ,federal legislation is needed to require the collection of beneficial ownership information for the corporations and limited liability companies formed under the laws of such ,states4 #c4 ,transparent incorporation practices 7a7 ,in general 7#a7 ,amendment to the ,bank ,secrecy ,act ,chapter #ec of title #ca1 ,united ,states ,code1 is amended by inserting after section #eccb the following new section3 #eccc ,transparent incorporation practices 7a7 ,reporting requirements 7#a7 ,beneficial ownership reporting 7,a7 ,in general ,each applicant to form a corporation or limited liability company under the laws of a ,state or ,indian ,tribe shall file a report with ,fin,c,e,n containing a list of the beneficial owners of the corporation or limited liability company that-- 7i7 except as provided in paragraphs 7#c7 and 7#d71 and subject to paragraph 7#b71 identifies each beneficial owner by-- 7,i7 full legal name2 7,,ii7 date of birth2 7,,iii7 current residential or business street address2 and 7,,iv7 a unique identifying number from a non-expired passport issued by the ,united ,states1 a non-expired personal identification card1 or a non-expired driver's license issued by a ,state2 and 7ii7 if the applicant is not a beneficial owner1 also provides the identification information described in clause 7i7 relating to such applicant4 7,b7 ,updated information ,each corporation or limited liability company formed under the laws of a ,state or ,indian ,tribe shall-- 7i7 submit to ,fin,c,e,n an annual filing containing a list of-- 7,i7 the current beneficial owners of the corporation or limited liability company and the information described in subparagraph 7,a7 for each such beneficial owner2 and 7,,ii7 any changes in the beneficial owners of the corporation or limited liability company during the previous year2 and 7ii7 pursuant to any rule issued by the ,secretary of the ,treasury under subparagraph 7,c71 update the list of the beneficial owners of the corporation or limited liability company within the time period prescribed by such rule4 7,c7 ,rulemaking on updating information ,not later than #i months after the completion of the study required under section #d7;a77#a7 of the ,corporate ,transparency ,act of #bjai1 the ,secretary of the ,treasury shall consider the findings of such study and1 if the ,secretary determines it to be necessary or appropriate1 issue a rule requiring corporations and limited liability companies to update the list of the beneficial owners of the corporation or limited liability company within a specified amount of time after the date of any change in the list of beneficial owners or the information required to be provided relating to each beneficial owner4 7,d7 ,state notification ,each ,state in which a corporation or limited liability company is being formed shall notify each applicant of the requirements listed in subparagraphs 7,a7 and 7,b74 7#b7 ,certain beneficial owners ,if an applicant to form a corporation or limited liability company or a beneficial owner1 or similar agent of a corporation or limited liability company who is required to provide identification information under this subsection1 does not have a nonexpired passport issued by the ,united ,states1 a nonexpired personal identification card1 or a non-expired driver's license issued by a ,state1 each such person shall provide to ,fin,c,e,n the full legal name1 current residential or business street address1 a unique identifying number from a non-expired passport issued by a foreign government1 and a legible and credible copy of the pages of a non-expired passport issued by the government of a foreign country bearing a photograph1 date of birth1 and unique identifying information for each beneficial owner1 and each application described in paragraph 7#a77;,a7 and each update described in paragraph 7#a77;,b7 shall include a written certification by a person residing in the ,state or ,indian country under the jurisdiction of the ,indian ,tribe forming the entity that the applicant1 corporation1 or limited liability company-- 7,a7 has obtained for each such beneficial owner1 a current residential or business street address and a legible and credible copy of the pages of a non-expired 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 full legal 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 of ,fin,c,e,n2 and 7,d7 will retain the information and proof of verification under this paragraph 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 ,state or ,indian ,tribe4 7#c7 ,exempt entities 7,a7 ,in general ,with respect to an applicant to form a corporation or limited liability company under the laws of a ,state or ,indian ,tribe1 if such entity is described in subparagraph 7,c7 or 7,d7 of subsection 7d77#d7 and will be exempt from the beneficial ownership disclosure requirements under this subsection1 such applicant1 or a prospective officer1 director1 or similar agent of the applicant1 shall file a written certification with ,fin,c,e,n-- 7i7 identifying the specific provision of subsection 7d77#d7 under which the entity proposed to be formed would be exempt from the beneficial ownership disclosure requirements under paragraphs 7#a7 and 7#b72 7ii7 stating that the entity proposed to be formed meets the requirements for an entity described under such provision of subsection 7d77#d72 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#b74 7,b7 ,existing corporations or limited liability companies ,on and after the date that is #b years after the final regulations are issued to carry out this section1 a corporation or limited liability company formed under the laws of the ,state or ,indian ,tribe before such date shall be subject to the requirements of this subsection unless an officer1 director1 or similar agent of the entity submits to ,fin,c,e,n a written certification-- 7i7 identifying the specific provision of subsection 7d77#d7 under which the entity is exempt from the requirements under paragraphs 7#a7 and 7#b72 7ii7 stating that the entity meets the requirements for an entity described under such provision of subsection 7d77#d72 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#b74 7,c7 ,exempt entities having ownership interest ,if an entity described in subparagraph 7,c7 or 7,d7 of subsection 7d77#d7 has or will have an ownership interest in a corporation or limited liability company formed or to be formed under the laws of a ,state or ,indian ,tribe1 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 7#d7 ,fin,c,e,n ,,id numbers 7,a7 ,issuance of ,fin,c,e,n ,,id number 7i7 ,in general ,fin,c,e,n shall issue a ,fin,c,e,n ,,id number to any individual who requests such a number and provides ,fin,c,e,n with the information described under subclauses 7,i7 through 7,,iv7 of paragraph 7#a77;,a77i74 7ii7 ,updating of information ,an individual with a ,fin,c,e,n ,,id number shall submit an annual filing with ,fin,c,e,n updating any information described under subclauses 7,i7 through 7,,iv7 of paragraph 7#a77;,a77i74 7,b7 ,use of ,fin,c,e,n ,,id number in reporting requirements ,any person required to report the information described under paragraph 7#a77;,a77i7 with respect to an individual may instead report the ,fin,c,e,n ,,id number of the individual4 7,c7 ,treatment of information submitted for ,fin,c,e,n ,,id number ,for purposes of this section1 any information submitted under subparagraph 7,a7 shall be deemed to be beneficial ownership information4 7#e7 ,retention and disclosure of beneficial ownership information by ,fin,c,e,n 7,a7 ,retention of information ,beneficial ownership information relating to each corporation or limited liability company formed under the laws of the ,state or ,indian ,tribe shall be maintained by ,fin,c,e,n until the end of the #e-year period 7or such other period of time as the ,secretary of the ,treasury may1 by rule1 determine7 beginning on the date that the corporation or limited liability company terminates4 7,b7 ,disclosure of information ,beneficial ownership information reported to ,fin,c,e,n pursuant to this section shall be provided by ,fin,c,e,n only upon receipt of-- 7i7 subject to subparagraph 7,c71 a request1 through appropriate protocols1 by a local1 ,tribal1 ,state1 or ,federal law enforcement agency2 7ii7 a request made by a ,federal agency on behalf of a law enforcement agency of another country under an international treaty1 agreement1 or convention1 or an order under section #ceab of title #ah or section #aghb of title #bh2 or 7iii7 a request made by a financial institution1 with customer consent1 as part of the institution's compliance with due diligence requirements imposed under the ,bank ,secrecy ,act1 the ,,usa ,,patriot ,act1 or other applicable ,federal1 ,state1 or ,tribal law4 7,c7 ,appropriate protocols 7i7 ,privacy ,the protocols described in subparagraph 7,b77i7 shall-- 7,i7 protect the privacy of any beneficial ownership information provided by ,fin,c,e,n to a local1 ,tribal1 ,state1 or ,federal law enforcement agency2 7,,ii7 ensure that a local1 ,tribal1 ,state1 or ,federal law enforcement agency requesting beneficial ownership information has an existing investigatory basis for requesting such information2 7,,iii7 ensure that access to beneficial ownership information is limited to authorized users at a local1 ,tribal1 ,state1 or ,federal law enforcement agency who have undergone appropriate training1 and that the identity of such authorized users is verified through appropriate mechanisms1 such as two-factor authentication2 7,,iv7 include an audit trail of requests for beneficial ownership information by a local1 ,tribal1 ,state1 or ,federal law enforcement agency1 including1 as necessary1 information concerning queries made by authorized users at a local1 ,tribal1 ,state1 or ,federal law enforcement agency2 7,v7 require that every local1 ,tribal1 ,state1 or ,federal law enforcement agency that receives beneficial ownership information from ,fin,c,e,n conducts an annual audit to verify that the beneficial ownership information received from ,fin,c,e,n has been accessed and used appropriately1 and consistent with this paragraph2 and 7,,vi7 require ,fin,c,e,n to conduct an annual audit of every local1 ,tribal1 ,state1 or ,federal law enforcement agency that has received beneficial ownership information to ensure that such agency has requested beneficial ownership information1 and has used any beneficial ownership information received from ,fin,c,e,n1 appropriately1 and consistent with this paragraph4 7ii7 ,limitation on use ,beneficial ownership information provided to a local1 ,tribal1 ,state1 or ,federal law enforcement agency under this paragraph may only be used for law enforcement1 national security1 or intelligence purposes4 7b7 ,no bearer share corporations or limited liability companies ,a corporation or limited liability company formed under the laws of a ,state or ,indian ,tribe may not issue a certificate in bearer form evidencing either a whole or fractional interest in the corporation or limited liability company4 7c7 ,penalties 7#a7 ,in general ,it shall be unlawful for any person to affect interstate or foreign commerce by-- 7,a7 knowingly providing1 or attempting to provide1 false or fraudulent beneficial ownership information1 including a false or fraudulent identifying photograph1 to ,fin,c,e,n in accordance with this section2 7,b7 willfully failing to provide complete or updated beneficial ownership information to ,fin,c,e,n in accordance with this section2 or 7,c7 knowingly disclosing the existence of a subpoena or other request for beneficial ownership information reported pursuant to this section1 except-- 7i7 to the extent necessary to fulfill the authorized request2 or 7ii7 as authorized by the entity that issued the subpoena1 or other request4 7#b7 ,civil and criminal penalties ,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 7#c7 ,limitation ,any person who negligently violates paragraph 7#a7 shall not be subject to civil or criminal penalties under paragraph 7#b74 7#d7 ,waiver ,the ,secretary of the ,treasury may waive the penalty for violating paragraph 7#a7 if the ,secretary determines that the violation was due to reasonable cause and was not due to willful neglect4 7#e7 ,criminal penalty for the misuse or unauthorized disclosure of beneficial ownership information ,the criminal penalties provided for under section #ecbb shall apply to a violation of this section to the same extent as such criminal penalties apply to a violation described in section #ecbb1 if the violation of this section consists of the misuse or unauthorized disclosure of beneficial ownership information4 7d7 ,definitions ,for the purposes of this section3 7#a7 ,applicant ,the term applicant means any natural person who files an application to form a corporation or limited liability company under the laws of a ,state or ,indian ,tribe4 7#b7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act means-- 7,a7 section #ba of the ,federal ,deposit ,insurance ,act2 7,b7 chapter #b of title ,i of ,public ,law #ia-ejh2 and 7,c7 this subchapter4 7#c7 ,beneficial owner 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term beneficial owner means a natural person who1 directly or indirectly1 through any contract1 arrangement1 understanding1 relationship1 or otherwise-- 7i7 exercises substantial control over a corporation or limited liability company2 7ii7 owns #be percent or more of the equity interests of a corporation or limited liability company2 or 7iii7 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 child1 as defined in the ,state or ,indian ,tribe in which the entity is formed2 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 inheritance2 or 7v7 a creditor of a corporation or limited liability company1 unless the creditor also meets the requirements of subparagraph 7,a74 7,c7 ,substantial economic benefits defined 7i7 ,in general ,for purposes of subparagraph 7,a77ii71 a natural person receives substantial economic benefits from the assets of a corporation or limited liability company if the person has an entitlement to more than a specified percentage of the funds or assets of the corporation or limited liability company1 which the ,secretary of the ,treasury shall1 by rule1 establish4 7ii7 ,rulemaking criteria ,in establishing the percentage under clause 7i71 the ,secretary of the ,treasury shall seek to-- 7,i7 provide clarity to corporations and limited liability companies with respect to the identification and disclosure of a natural person who receives substantial economic benefits from the assets of a corporation or limited liability company2 and 7,,ii7 identify those natural persons who1 as a result of the substantial economic benefits they receive from the assets of a corporation or limited liability company1 exercise a dominant influence over such corporation or limited liability company4 7#d7 ,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 ,state or ,indian ,tribe2 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 ,state or ,indian ,tribe2 7,c7 do not include any entity that is-- 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 constituted1 sponsored1 or chartered by a ,state or ,indian ,tribe1 a political subdivision of a ,state or ,indian ,tribe1 under an interstate compact between two 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 #ahda77 or a savings and loan holding company 7as defined in section #aj7;a7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7a772 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 ,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 adviser 7as defined in section #bjb7aa7 of the ,investment ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#b7aa7771 if the company or adviser is registered with the ,securities and ,exchange ,commission1 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 ,adviser ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq471 or is an investment adviser described under section #bjc7l7 of the ,investment ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#c7l772 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 #gbab7 or an entity controlling1 controlled by1 or under common control of such a firm2 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 nonprofit entity1 or other organization that is described in section #eja7;c71 #ebg1 or #didg7;a77#a7 of the ,internal ,revenue ,code of #aihf1 that has not been denied tax exempt status1 and that has filed the most recently due annual information return with the ,internal ,revenue ,service1 if required to file such a return2 7xiv7 a financial market utility designated by the ,financial ,stability ,oversight ,council under section #hjd of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act2 7xv7 an insurance producer 7as defined in section #ccd of the ,gramm-,leach-,bliley ,act72 7xvi7 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 7xvii7 any corporation or limited liability company formed and owned by an entity described in this clause or in clause 7i71 7ii71 7iii71 7iv71 7v71 7vi71 7vii71 7viii71 7ix71 7x71 7xi71 7xii71 7xiii71 7xiv71 7xv71 or 7xvi72 and 7,d7 do not include any individual business concern or class of business concerns which the ,secretary of the ,treasury and the ,attorney ,general of the ,united ,states have jointly determined1 by rule of otherwise1 to be exempt from the requirements of subsection 7a71 if the ,secretary and the ,attorney ,general jointly determine that 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 prosecute terrorism1 money laundering1 tax evasion1 or other misconduct4 7#e7 ,fincen ,the term ,fin,c,e,n means the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury4 7#f7 ,indian country ,the term ,indian country has the meaning given that term in section #aaea of title #ah4 7#g7 ,indian tribe ,the term ,indian ,tribe has the meaning given that term under section #ajb of the ,federally ,recognized ,indian ,tribe ,list ,act of #aiid4 7#h7 ,personal identification card ,the term personal identification card means an identification document issued by a ,state1 ,indian ,tribe1 or local government to an individual solely for the purpose of identification of that individual4 7#i7 ,state ,the term ,state means any ,state1 commonwealth1 territory1 or possession of the ,united ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,commonwealth of the ,northern ,mariana ,islands1 ,american ,samoa1 ,guam1 or the ,united ,states ,virgin ,islands4 4 7#b7 ,rulemaking 7,a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall issue regulations to carry out this ,act and the amendments made by this ,act1 including1 to the extent necessary1 to clarify the definitions in section #eccc7;d7 of title #ca1 ,united ,states ,code4 7,b7 ,revision of final rule ,not later than #a year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall revise the final rule titled ,customer ,due ,diligence ,requirements for ,financial ,institutions 7,may #aa1 #bjaf2 #ha ,fed4 ,reg4 #bicig7 to-- 7i7 bring the rule into conformance with this ,act and the amendments made by this ,act2 7ii7 account for financial institutions' access to comprehensive beneficial ownership information filed by corporations and limited liability companies1 under threat of civil and criminal penalties1 under this ,act and the amendments made by this ,act2 and 7iii7 reduce any burdens on financial institutions that are1 in light of the enactment of this ,act and the amendments made by this ,act1 unnecessary or duplicative4 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 #eccc4 ,transparent incorporation practices4 4 7b7 ,funding authorization 7#a7 ,in general ,to carry out section #eccc of title #ca1 ,united ,states ,code1 as added by subsection 7a71 funds shall be made available to the ,financial ,crimes ,enforcement ,network 7in this subsection referred to as ,fin,c,e,n7 to pay reasonable costs relating to compliance with the requirements of such section4 7#b7 ,funding sources ,funds shall be provided to ,fin,c,e,n to carry out the purposes described in paragraph 7#a7 from one or more of the following sources3 7,a7 ,upon application by ,fin,c,e,n1 and without further appropriation1 the ,secretary of the ,treasury shall make available to the ,fin,c,e,n 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 ,fin,c,e,n1 after consultation with the ,secretary of the ,treasury1 and without further appropriation1 the ,attorney ,general of the ,united ,states shall make available to ,fin,c,e,n 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 ,fin,c,e,n 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 ,fin,c,e,n a total of more than #aj1jjj1jjj under paragraph 7#b77;,b74 7c7 ,federal contractors ,not later than the first day of the first full fiscal year beginning at least #a 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 or subcontractor 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 #d4 ,studies and reports 7a7 ,updating of beneficial ownership information 7#a7 ,study ,the ,secretary of the ,treasury1 in consultation with the ,attorney ,general of the ,united ,states1 shall conduct a study to evaluate-- 7,a7 the necessity of a requirement for corporations and limited liability companies to update the list of their beneficial owners within a specified amount of time after the date of any change in the list of beneficial owners or the information required to be provided relating to each beneficial owner1 taking into account the annual filings required under section #eccc7;a77#a77;,b77i7 of title #ca1 ,united ,states ,code1 and the information contained in such annual filings2 and 7,b7 the burden that a requirement to update the list of beneficial owners within a specified period of time after a change in such list of beneficial owners would impose on corporations and limited liability companies4 7#b7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall submit a report on the study required under paragraph 7#a7 to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate 7#c7 ,public comment ,the ,secretary of the ,treasury shall seek and consider public input1 comments1 and data in order to conduct the study required under subparagraph paragraph 7#a74 7b7 ,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 or ,indian ,tribe that has procedures that enable persons to form or register under the laws of the ,state or ,indian ,tribe partnerships1 trusts1 or other legal entities1 and the nature of those procedures2 7#b7 identifying each ,state or ,indian ,tribe that requires persons seeking to form or register partnerships1 trusts1 or other legal entities under the laws of the ,state or ,indian ,tribe 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 7,b7 has impeded investigations into entities suspected of such misconduct2 and 7,c7 increases the costs to financial institutions of complying with due diligence requirements imposed under the ,bank ,secrecy ,act1 the ,,usa ,,patriot ,act1 or other applicable ,federal1 ,state1 or ,tribal law2 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 7c7 ,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 #e4 ,definitions ,in this ,act1 the terms ,bank ,secrecy ,act1 beneficial owner1 corporation1 and limited liability company have the meaning given those terms1 respectively1 under section #eccc7;d7 of title #ca1 ,united ,states ,code4 ,october #h1 #bjai ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed