H.R.3829 - FinCEN–SBA Coordination on Beneficial Ownership Registration Act (119th Congress)
Summary
H.R.3829, the FinCEN–SBA Coordination on Beneficial Ownership Registration Act, mandates collaboration between the Financial Crimes Enforcement Network (FinCEN) and the Small Business Administration (SBA). The goal is to improve the dissemination of information regarding beneficial ownership reporting requirements to small businesses. This involves creating a memorandum of understanding (MOU) to ensure that small businesses are aware of and can comply with these requirements under section 5336 of title 31, United States Code.
Expected Effects
The Act aims to increase compliance with beneficial ownership reporting requirements among small businesses. This will be achieved through enhanced outreach, educational resources in multiple languages, and coordinated efforts to counter fraudulent schemes. Ultimately, this should help to combat illicit financial activities that utilize shell companies.
Potential Benefits
- Improved awareness among small businesses regarding beneficial ownership reporting requirements.
- Reduced opportunities for illicit actors to use shell companies for illegal activities.
- Enhanced coordination between FinCEN and SBA, leading to more effective outreach.
- Increased transparency in corporate ownership, benefiting national security.
- Provision of resources in multiple languages, aiding diverse business owners.
Potential Disadvantages
- Potential administrative burden on FinCEN and SBA to implement the MOU and reporting requirements.
- Possible costs associated with translating materials and conducting outreach.
- Risk of increased complexity for small businesses if the information is not clearly presented.
- Potential for scams targeting small businesses related to beneficial ownership reporting.
- The Act does not address the underlying complexity of beneficial ownership rules themselves.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) by aiming to regulate activities that affect interstate and foreign commerce, specifically illicit financial activities. It also aligns with the Necessary and Proper Clause (Article I, Section 8, Clause 18) as it enables Congress to enact laws necessary for carrying out its powers, such as regulating commerce and ensuring national security. The Act does not appear to infringe upon any specific constitutional rights or freedoms.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).