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December 09, 2020 at 09:36 AM
In its giant military spending package, Congress indicated it wants to exempt insurers and insurance producers from proposed anti-money laundering reporting requirements.
The package is the conference report version of H.R. 6395, the “William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021″ bill. Congress needs to pass the package, or alternative legislation, to keep the military operating normally.
The anti-money-laundering reporting requirements appear on page 2,996 of the 4,517-page conference report PDF file, in Title LXIV — Establishing Beneficial Ownership Information Reporting Requirements.
The section would create a new Corporate Transparency Act,. The act would require some corporations and limited liability companies to send reports about their ownership to the federal Financial Crimes Enforcement Network (FinCEN), in an effort to keep non-U.S. individuals and entities from using anonymous shell companies to launder money or break the law in other ways.
Resources
- A copy of the H.R. 6395 conference report is available here.
- An earlier article about FinCEN beneficial ownership reporting regulations is available here.
FinCEN would maintain a database of beneficial ownership filings sent in by new affected companies and by affected companies that change hands.
Government officials could use the FinCEN database for law enforcement and anti-terrorism purposes.
Financial institutions could get information from the beneficial ownership database for purposes of complying with customer due diligence requirements.
The beneficial ownership reporting section exempts many types of companies that already come under the oversight of state or federal regulators from having to send reports about their ownership to FinCEN.
Other Exempt Groups
The list of entities exempted includes commodity brokers, investment advisors that are registered with the U.S. Securities and Exchange Commission, and pooled investment vehicles operated by investment advisors.
