When IBANYS was in Washington for congressional visits April 30, we met in Rep. Carolyn Maloney’s (D-Manhattan) office on a number of issues, including legislation regarding “beneficial owners.” Rep. Maloney is a senior member of the House Financial Services Committee. ICBA this week urged Congress to require companies to disclose their “beneficial owners” when they are formed. In a statement for today’s Senate Banking Committee hearing on collecting beneficial ownership information, ICBA is demonstrating support for Rep. Maloney’s “Corporate Transparency Act” (H.R. 2513). As IBANYS shared with Rep. Maloney, and as ICBA noted, collecting this information for all legal-entity customers is a difficult and onerous task for banks. On the other hand, requiring businesses to provide this information to the Financial Crimes Enforcement Network would provide no additional burden on these companies over what they currently provide to banks under the existing Customer Due Diligence rule.
Furthermore, ICBA also provided its July 2018 white paper on modernizing anti-money-laundering and anti-terrorist-financing laws and regulations. As Congress debates Bank Secrecy Act reform, the white paper advocates updating currency transaction report and suspicious activity report thresholds, providing more current information to financial institutions, and creating a tax credit to offset the cost of the Bank Secrecy Act.