The House today voted 249-173 to pass the American Bankers Association-backed Corporate Transparency Act (H.R. 2513). The legislation, sponsored by Rep. Carolyn Maloney (D-N.Y.), would direct the Financial Crimes Enforcement Network to create a national database that banks could use to verify a business’s beneficial ownership information. The bill was amended before passage to include legislation championed by Rep. Emanuel Cleaver (D-Mo.) that would modernize the existing anti-money laundering/Bank Secrecy Act framework by, among other things, enhancing bank-law enforcement communications.
ABA President and CEO Rob Nichols welcomed the bipartisan vote as “a critical step forward . . . that will help prevent bad actors from accessing the financial system.” He added that the bill would “build on the strong cooperation between banks and law enforcement by improving information sharing while ensuring that financial institutions keep providing the most valuable and relevant information possible.”
In the Senate, the ABA-supported Illicit Cash Act contains similar provisions to H.R. 2513. “We urge the Senate to build on this momentum and move quickly to pass its own bipartisan bill,” Nichols said. An ABA Banking Journal Podcast episode last week featured detailed analysis of what these bills will mean for BSA compliance.