H. R. 6395—1234 
‘‘(f) NO BEARER SHARE CORPORATIONS OR LIMITED LIABILITY 
COMPANIES.—A corporation, limited liability company, or other 
similar entity 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 entity. 
‘‘(g) REGULATIONS.—In promulgating regulations carrying out 
this section, the Director shall reach out to members of the small 
business community and other appropriate parties to ensure effi-
ciency and effectiveness of the process for the entities subject to 
the requirements of this section. 
‘‘(h) PENALTIES.— 
‘‘(1) REPORTING VIOLATIONS.—It shall be unlawful for any 
person to— 
‘‘(A) willfully provide, or attempt to provide, false or 
fraudulent beneficial ownership information, including a 
false or fraudulent identifying photograph or document, 
to FinCEN in accordance with subsection (b); or 
‘‘(B) willfully fail to report complete or updated bene-
ficial ownership information to FinCEN in accordance with 
subsection (b). 
‘‘(2) UNAUTHORIZED DISCLOSURE OR USE.—Except as author-
ized by this section, it shall be unlawful for any person to 
knowingly disclose or knowingly use the beneficial ownership 
information obtained by the person through— 
‘‘(A) a report submitted to FinCEN under subsection 
(b); or 
‘‘(B) a disclosure made by FinCEN under subsection 
(c). 
‘‘(3) CRIMINAL AND CIVIL PENALTIES.— 
‘‘(A) REPORTING VIOLATIONS.—Any person that violates 
subparagraph (A) or (B) of paragraph (1)— 
‘‘(i) shall be liable to the United States for a civil 
penalty of not more than $500 for each day that the 
violation continues or has not been remedied; and 
‘‘(ii) may be fined not more than $10,000, impris-
oned for not more than 2 years, or both. 
‘‘(B) UNAUTHORIZED DISCLOSURE OR USE VIOLATIONS.— 
Any person that violates paragraph (2)— 
‘‘(i) shall be liable to the United States for a civil 
penalty of not more than $500 for each day that the 
violation continues or has not been remedied; and 
‘‘(ii)(I) shall be fined not more than $250,000, or 
imprisoned for not more than 5 years, or both; or 
‘‘(II) while violating another law of the United 
States or as part of a pattern of any illegal activity 
involving more than $100,000 in a 12-month period, 
shall be fined not more than $500,000, imprisoned 
for not more than 10 years, or both. 
‘‘(C) SAFE HARBOR.— 
‘‘(i) SAFE HARBOR.— 
‘‘(I) IN GENERAL.—Except as provided in sub-
clause (II), a person shall not be subject to civil 
or criminal penalty under subparagraph (A) if the 
person— 
‘‘(aa) has reason to believe that any report 
submitted by the person in accordance with
H. R. 6395—1235 
subsection (b) contains inaccurate information; 
and 
‘‘(bb) in accordance with regulations 
issued by the Secretary, voluntarily and 
promptly, and in no case later than 90 days 
after the date on which the person submitted 
the report, submits a report containing cor-
rected information. 
‘‘(II) EXCEPTIONS.—A person shall not be 
exempt from penalty under clause (i) if, at the 
time the person submits the report required by 
subsection (b), the person— 
‘‘(aa) acts for the purpose of evading the 
reporting requirements under subsection (b); 
and 
‘‘(bb) has actual knowledge that any 
information contained in the report is inac-
curate. 
‘‘(ii) ASSISTANCE.—FinCEN shall provide assist-
ance to any person seeking to submit a corrected report 
in accordance with clause (i)(I). 
‘‘(4) USER COMPLAINT PROCESS.— 
‘‘(A) IN
GENERAL.—The Inspector General of the 
Department of the Treasury, in coordination with the Sec-
retary of the Treasury, shall provide public contact informa-
tion to receive external comments or complaints regarding 
the beneficial ownership information notification and collec-
tion process or regarding the accuracy, completeness, or 
timeliness of such information. 
‘‘(B) REPORT.—The Inspector General of the Depart-
ment of the Treasury shall submit to Congress a periodic 
report that— 
‘‘(i) summarizes external comments or complaints 
and related investigations conducted by the Inspector 
General related to the collection of beneficial ownership 
information; and 
‘‘(ii) includes recommendations, in coordination 
with FinCEN, to improve the form and manner of 
the notification, collection and updating processes of 
the beneficial ownership information reporting require-
ments to ensure the beneficial ownership information 
reported to FinCEN is accurate, complete, and highly 
useful. 
‘‘(5) TREASURY OFFICE OF INSPECTOR GENERAL INVESTIGA-
TION IN THE EVENT OF A CYBERSECURITY BREACH.— 
‘‘(A) IN
GENERAL.—In the event of a cybersecurity 
breach that results in substantial unauthorized access and 
disclosure of sensitive beneficial ownership information, 
the Inspector General of the Department of the Treasury 
shall conduct an investigation into FinCEN cybersecurity 
practices that, to the extent possible, determines any 
vulnerabilities within FinCEN information security and 
confidentiality protocols and provides recommendations for 
fixing those deficiencies. 
‘‘(B) REPORT.—The Inspector General of the Depart-
ment of the Treasury shall submit to the Secretary of
H. R. 6395—1236 
the Treasury a report on each investigation conducted 
under subparagraph (A). 
‘‘(C) ACTIONS OF THE SECRETARY.—Upon receiving a 
report submitted under subparagraph (B), the Secretary 
of the Treasury shall— 
‘‘(i) determine whether the Director had any 
responsibility for the cybersecurity breach or whether 
policies, practices, or procedures implemented at the 
direction of the Director led to the cybersecurity breach; 
and 
‘‘(ii) submit to Congress a written report outlining 
the findings of the Secretary, including a determination 
by the Secretary on whether to retain or dismiss the 
individual serving as the Director. 
‘‘(6) DEFINITION.—In this subsection, the term ‘willfully’ 
means the voluntary, intentional violation of a known legal 
duty. 
‘‘(i) CONTINUOUS REVIEW OF EXEMPT ENTITIES.— 
‘‘(1) IN GENERAL.—On and after the effective date of the 
regulations promulgated under subsection (b)(4), if the Sec-
retary of the Treasury makes a determination, which may 
be based on information contained in the report required under 
section 6502(c) of the Anti-Money Laundering Act of 2020 or 
on any other information available to the Secretary, that an 
entity or class of entities described in subsection (a)(11)(B) 
has been involved in significant abuse relating to money laun-
dering, the financing of terrorism, proliferation finance, serious 
tax fraud, or any other financial crime, not later than 90 
days after the date on which the Secretary makes the deter-
mination, the Secretary shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representa-
tives a report that explains the reasons for the determination 
and any administrative or legislative recommendations to pre-
vent such abuse. 
‘‘(2) CLASSIFIED ANNEX.—The report required by paragraph 
(1)— 
‘‘(A) shall be submitted in unclassified form; and 
‘‘(B) may include a classified annex.’’. 
(b) CONFORMING AMENDMENTS.—Title 31, United States Code, 
is amended— 
(1) in section 5321(a)— 
(A) in paragraph (1), by striking ‘‘sections 5314 and 
5315’’ each place that term appears and inserting ‘‘sections 
5314, 5315, and 5336’’; and 
(B) in paragraph (6), by inserting ‘‘(except section 
5336)’’ after ‘‘subchapter’’ each place that term appears; 
(2) in section 5322, by striking ‘‘section 5315 or 5324’’ 
each place that term appears and inserting ‘‘section 5315, 5324, 
or 5336’’; and 
(3) in the table of sections for chapter 53, as amended 
by sections 6306(b)(1), 6307(b), and 6313(b) of this division, 
by adding at the end the following: 
‘‘5336. Beneficial ownership information reporting requirements.’’. 
(c) REPORTING REQUIREMENTS FOR FEDERAL CONTRACTORS.—
H. R. 6395—1237 
(1) IN GENERAL.—Not later than 2 years after the date 
of enactment of this Act, the Administrator for Federal Procure-
ment Policy shall revise the Federal Acquisition Regulation 
maintained under section 1303(a)(1) of title 41, United States 
Code, to require any contractor or subcontractor that is subject 
to the requirement to disclose beneficial ownership information 
under section 5336 of title 31, United States Code, as added 
by subsection (a) of this section, 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 134 of title 41, United States Code. 
(2) APPLICABILITY.—The revision required under paragraph 
(1) shall not apply to a covered contractor or subcontractor, 
as defined in section 847 of the National Defense Authorization 
Act for Fiscal Year 2020 (Public Law 116–92), that is subject 
to the beneficial ownership disclosure and review requirements 
under that section. 
(d) REVISED DUE DILIGENCE RULEMAKING.— 
(1) IN GENERAL.—Not later than 1 year after the effective 
date of the regulations promulgated under section 5336(b)(4) 
of title 31, United States Code, as added by subsection (a) 
of this section, the Secretary of the Treasury shall revise the 
final rule entitled ‘‘Customer Due Diligence Requirements for 
Financial Institutions’’ (81 Fed. Reg. 29397 (May 11, 2016)) 
to— 
(A) bring the rule into conformance with this division 
and the amendments made by this division; 
(B) account for the access of financial institutions to 
beneficial ownership information filed by reporting compa-
nies under section 5336, and provided in the form and 
manner prescribed by the Secretary, in order to confirm 
the beneficial ownership information provided directly to 
the financial institutions to facilitate the compliance of 
those financial institutions with anti-money laundering, 
countering the financing of terrorism, and customer due 
diligence requirements under applicable law; and 
(C) reduce any burdens on financial institutions and 
legal entity customers that are, in light of the enactment 
of this division and the amendments made by this division, 
unnecessary or duplicative. 
(2) CONFORMANCE.— 
(A) IN GENERAL.—In carrying out paragraph (1), the 
Secretary of the Treasury shall rescind paragraphs (b) 
through (j) of section 1010.230 of title 31, Code of Federal 
Regulations upon the effective date of the revised rule 
promulgated under this subsection. 
(B) RULE OF CONSTRUCTION.—Nothing in this section 
may be construed to authorize the Secretary of the 
Treasury to repeal the requirement that financial institu-
tions identify and verify beneficial owners of legal entity 
customers under section 1010.230(a) of title 31, Code of 
Federal Regulations. 
(3) CONSIDERATIONS.—In fulfilling the requirements under 
this subsection, the Secretary of the Treasury shall consider— 
(A) the use of risk-based principles for requiring reports 
of beneficial ownership information;
H. R. 6395—1238 
(B) the degree of reliance by financial institutions on 
information provided by FinCEN for purposes of obtaining 
and updating beneficial ownership information; 
(C) strategies to improve the accuracy, completeness, 
and timeliness of the beneficial ownership information 
reported to the Secretary; and 
(D) any other matter that the Secretary determines 
is appropriate. 
TITLE LXV—MISCELLANEOUS 
Sec. 6501. Investigations and prosecution of offenses for violations of the securities 
laws. 
Sec. 6502. GAO and Treasury studies on beneficial ownership information report-
ing requirements. 
Sec. 6503. GAO study on feedback loops. 
Sec. 6504. GAO CTR study and report. 
Sec. 6505. GAO studies on trafficking. 
Sec. 6506. Treasury study and strategy on trade-based money laundering. 
Sec. 6507. Treasury study and strategy on money laundering by the People’s Re-
public of China. 
Sec. 6508. Treasury and Justice study on the efforts of authoritarian regimes to ex-
ploit the financial system of the United States. 
Sec. 6509. Authorization of appropriations. 
Sec. 6510. Discretionary surplus funds. 
Sec. 6511. Severability. 
SEC. 6501. INVESTIGATIONS AND PROSECUTION OF OFFENSES FOR 
VIOLATIONS OF THE SECURITIES LAWS. 
(a) IN GENERAL.—Section 21(d) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78u(d)) is amended— 
(1) in paragraph (3)— 
(A) in the paragraph heading— 
(i) by inserting ‘‘CIVIL’’ before ‘‘MONEY PENALTIES’’; 
and 
(ii) by striking ‘‘IN CIVIL ACTIONS’’ and inserting 
‘‘AND AUTHORITY TO SEEK DISGORGEMENT’’; 
(B) in subparagraph (A), by striking ‘‘jurisdiction to 
impose’’ and all that follows through the period at the 
end and inserting the following: ‘‘jurisdiction to— 
‘‘(i) impose, upon a proper showing, a civil penalty 
to be paid by the person who committed such violation; 
and 
‘‘(ii) require disgorgement under paragraph (7) of 
any unjust enrichment by the person who received 
such unjust enrichment as a result of such violation.’’; 
and 
(C) in subparagraph (B)— 
(i) in clause (i), in the first sentence, by striking 
‘‘the penalty’’ and inserting ‘‘a civil penalty imposed 
under subparagraph (A)(i)’’; 
(ii) in clause (ii), by striking ‘‘amount of penalty’’ 
and inserting ‘‘amount of a civil penalty imposed under 
subparagraph (A)(i)’’; and 
(iii) in clause (iii), in the matter preceding item 
(aa), by striking ‘‘amount of penalty for each such 
violation’’ and inserting ‘‘amount of a civil penalty 
imposed under subparagraph (A)(i) for each violation 
described in that subparagraph’’;
H. R. 6395—1239 
(2) in paragraph (4), by inserting ‘‘under paragraph (7)’’ 
after ‘‘funds disgorged’’; and 
(3) by adding at the end the following: 
‘‘(7) DISGORGEMENT.—In any action or proceeding brought 
by the Commission under any provision of the securities laws, 
the Commission may seek, and any Federal court may order, 
disgorgement. 
‘‘(8) LIMITATIONS PERIODS.— 
‘‘(A) DISGORGEMENT.—The Commission may bring a 
claim for disgorgement under paragraph (7)— 
‘‘(i) not later than 5 years after the latest date 
of the violation that gives rise to the action or pro-
ceeding in which the Commission seeks the claim 
occurs; or 
‘‘(ii) not later than 10 years after the latest date 
of the violation that gives rise to the action or pro-
ceeding in which the Commission seeks the claim if 
the violation involves conduct that violates— 
‘‘(I) section 10(b); 
‘‘(II) section 17(a)(1) of the Securities Act of 
1933 (15 U.S.C. 77q(a)(1)); 
‘‘(III) section 206(1) of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b–6(1)); or 
‘‘(IV) any other provision of the securities laws 
for which scienter must be established. 
‘‘(B) EQUITABLE REMEDIES.—The Commission may seek 
a claim for any equitable remedy, including for an injunc-
tion or for a bar, suspension, or cease and desist order, 
not later than 10 years after the latest date on which 
a violation that gives rise to the claim occurs. 
‘‘(C) CALCULATION.—For the purposes of calculating 
any limitations period under this paragraph with respect 
to an action or claim, any time in which the person against 
which the action or claim, as applicable, is brought is 
outside of the United States shall not count towards the 
accrual of that period. 
‘‘(9) RULE OF CONSTRUCTION.—Nothing in paragraph (7) 
may be construed as altering any right that any private party 
may have to maintain a suit for a violation of this Act.’’. 
(b) APPLICABILITY.—The amendments made by subsection (a) 
shall apply with respect to any action or proceeding that is pending 
on, or commenced on or after, the date of enactment of this Act. 
SEC. 6502. GAO AND TREASURY STUDIES ON BENEFICIAL OWNERSHIP 
INFORMATION REPORTING REQUIREMENTS. 
(a) EFFECTIVENESS OF INCORPORATION PRACTICES STUDY.—Not 
later than 2 years after the effective date of the regulations promul-
gated under section 5336(b)(4) of title 31, United States Code, 
as added by section 6403(a) of this division, the Comptroller General 
of the United States shall conduct a study and submit to Congress 
a report assessing the effectiveness of incorporation practices imple-
mented under this division, and the amendments made by this 
division, in— 
(1) providing national security, intelligence, and law 
enforcement agencies with prompt access to reliable, useful, 
and complete beneficial ownership information; and
H. R. 6395—1240 
(2) strengthening the capability of national security, intel-
ligence, and law enforcement agencies to— 
(A) combat incorporation abuses and civil and criminal 
misconduct; and 
(B) detect, prevent, or prosecute money laundering, 
the financing of terrorism, proliferation finance, serious 
tax fraud, or other crimes. 
(b) USING TECHNOLOGY
TO AVOID DUPLICATIVE LAYERS
OF 
REPORTING OBLIGATIONS AND INCREASE ACCURACY OF BENEFICIAL 
OWNERSHIP INFORMATION.— 
(1) IN GENERAL.—The Secretary, in consultation with the 
Attorney General, shall conduct a study to evaluate— 
(A) the effectiveness of using FinCEN identifiers, as 
defined in section 5336 of title 31, United States Code, 
as added by section 6403(a) of this division, or other sim-
plified reporting methods in order to facilitate a simplified 
beneficial ownership regime for reporting companies; 
(B) whether a reporting regime, whereby only company 
shareholders are reported within the ownership chain of 
a reporting company, could effectively track beneficial 
ownership information and increase information to law 
enforcement; 
(C) the costs associated with imposing any new 
verification requirements on FinCEN; and 
(D) the resources necessary to implement any such 
changes. 
(2) FINDINGS.—The Secretary shall submit to the relevant 
committees of jurisdiction— 
(A) the findings of the study conducted under para-
graph (1); and 
(B) recommendations for carrying out the findings 
described in subparagraph (A). 
(c) EXEMPT ENTITIES.—Not later than 2 years after the effective 
date of regulations promulgated under section 5336(b)(4) of title 
31, United States Code, as added by section 6403(a) of this division, 
the Comptroller General of the United States, in consultation with 
the Secretary, Federal functional regulators, the Attorney General, 
the Secretary of Homeland Security, and the intelligence commu-
nity, shall conduct a study and submit to Congress a report that— 
(1) reviews the regulated status, related reporting require-
ments, quantity, and structure of each class of corporations, 
limited liability companies, and similar entities that have been 
explicitly excluded from the definition of reporting company 
and the requirement to report beneficial ownership information 
under section 5336 of title 31, United States Code, as added 
by section 6403(a) of this division; 
(2) assesses the extent to which any excluded entity or 
class of entities described in paragraph (1) pose significant 
risks of money laundering, the financing of terrorism, prolifera-
tion finance, serious tax fraud, and other financial crime; and 
(3) identifies other policy areas related to the risks of 
exempt entities described in paragraph (1) for Congress to 
consider as Congress is conducting oversight of the new bene-
ficial ownership information reporting requirements established 
by this division and amendments made by this division. 
(d) OTHER LEGAL ENTITIES STUDY.—Not later than 2 years 
after the effective date of the regulations promulgated under section
H. R. 6395—1241 
5336(b)(4) of title 31, United States Code, as added by section 
6403(a) of this division, the Comptroller General of the United 
States shall conduct a study and submit to Congress a report— 
(1) identifying each State that has procedures that enable 
persons to form or register under the laws of the State partner-
ships, trusts, or other legal entities, and the nature of those 
procedures; 
(2) identifying each State that requires persons seeking 
to form or register partnerships, trusts, or other legal entities 
under the laws of the State to provide beneficial owners (as 
defined in section 5336(a) of title 31, United States Code, as 
added by section 6403 of this division) or beneficiaries of those 
entities, and the nature of the required information; 
(3) evaluating whether the lack of available beneficial 
ownership information for partnerships, trusts, or other legal 
entities— 
(A) raises concerns about the involvement of those 
entities in terrorism, money laundering, tax evasion, securi-
ties fraud, or other misconduct; and 
(B) has impeded investigations into entities suspected 
of the misconduct described in subparagraph (A); 
(4) 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 
(5) including what steps, if any, the United States has 
taken, is planning to take, or should take in response to the 
criticism described in paragraph (4). 
SEC. 6503. GAO STUDY ON FEEDBACK LOOPS. 
(a) DEFINITION.—In this section, the term ‘‘feedback loop’’ 
means feedback provided by the United States Government to rel-
evant parties. 
(b) STUDY.—The Comptroller General of the United States shall 
conduct a study on— 
(1) best practices within the United States Government 
for feedback loops, including regulated private entities, on the 
usage and usefulness of personally identifiable information, 
sensitive-but-unclassified data, or similar information provided 
by the parties to United States Government users of the 
information and data, including law enforcement agencies and 
regulators; and 
(2) any practice or standard inside or outside the United 
States for providing feedback through sensitive information 
and public-private partnership information sharing efforts, 
specifically related to efforts to combat money laundering and 
other forms of illicit finance. 
(c) REPORT.—Not later than 18 months after the date of enact-
ment of this Act, the Comptroller General of the United States 
shall submit to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services 
of the House of Representatives a report containing— 
(1) all findings and determinations made in carrying out 
the study required under subsection (b); 
(2) with respect to each of paragraphs (1) and (2) of sub-
section (b), any best practice or significant concern identified 
by the Comptroller General, and the applicability to public-
H. R. 6395—1242 
private partnerships and feedback loops with respect to efforts 
by the United States Government to combat money laundering 
and other forms of illicit finance; and 
(3) recommendations of the Comptroller General to reduce 
or eliminate any unnecessary collection by the United States 
Government of the information described in subsection (b)(1). 
SEC. 6504. GAO CTR STUDY AND REPORT. 
The Comptroller General of the United States shall— 
(1) not later than January 1, 2025, commence a study 
of currency transaction reports, which shall include— 
(A) a review, carried out in consultation with the Sec-
retary, FinCEN, the Attorney General, the State attorneys 
general, and State, Tribal, and local law enforcement, of 
the effectiveness of the currency transaction reporting 
regime in effect as of the date of the study; 
(B) an analysis of the importance of currency trans-
action reports to law enforcement; and 
(C) an analysis of the effects of raising the currency 
transaction report threshold; and 
(2) not later than December 31, 2025, submit to the Sec-
retary and Congress a report that includes— 
(A) all findings and determinations made in carrying 
out the study required under paragraph (1); and 
(B) recommendations for improving the currency trans-
action reporting regime. 
SEC. 6505. GAO STUDIES ON TRAFFICKING. 
(a) DEFINITION OF HUMAN TRAFFICKING.—In this section, the 
term ‘‘human trafficking’’ has the meaning given the term ‘‘severe 
forms of trafficking in persons’’ in section 103 of the Trafficking 
Victims Protection Act of 2000 (22 U.S.C. 7102). 
(b) GAO STUDY AND REPORT ON STOPPING TRAFFICKING, ILLICIT 
FLOWS, LAUNDERING, AND EXPLOITATION.— 
(1) STUDY.—The Comptroller General of the United States 
shall carry out a study, in consultation with law enforcement, 
relevant Federal agencies, appropriate private sector stake-
holders (including financial institutions and data and tech-
nology companies), academic and other research organizations 
(including survivor and victim advocacy organizations), and 
any other group that the Comptroller General determines is 
appropriate on— 
(A) the major trafficking routes used by transnational 
criminal organizations, terrorists, and others, and to what 
extent the trafficking routes for people (including children), 
drugs, weapons, cash, child sexual exploitation materials, 
or other illicit goods are similar, related, or contiguous; 
(B) commonly used methods to launder and move the 
proceeds of trafficking; 
(C) the types of suspicious financial activity that are 
associated with illicit trafficking networks, and how finan-
cial institutions identify and report such activity; 
(D) the nexus between the identities and finances of 
trafficked persons and fraud; 
(E) the tools, guidance, training, partnerships, super-
vision, or other mechanisms that Federal agencies, 
including FinCEN, the Federal financial regulators, and