H. R. 6395—1219 
‘‘(A) files an application to form a corporation, limited 
liability company, or other similar entity under the laws 
of a State or Indian Tribe; or 
‘‘(B) registers or files an application to register a cor-
poration, limited liability company, or other similar entity 
formed under the laws of a foreign country to do business 
in the United States by filing a document with the secretary 
of state or similar office under the laws of a State or 
Indian Tribe. 
‘‘(3) BENEFICIAL OWNER.—The term ‘beneficial owner’— 
‘‘(A) means, with respect to an entity, an individual 
who, directly or indirectly, through any contract, arrange-
ment, understanding, relationship, or otherwise— 
‘‘(i) exercises substantial control over the entity; 
or 
‘‘(ii) owns or controls not less than 25 percent 
of the ownership interests of the entity; and 
‘‘(B) does not include— 
‘‘(i) a minor child, as defined in the State in which 
the entity is formed, if the information of the parent 
or guardian of the minor child is reported in accordance 
with this section; 
‘‘(ii) an individual acting as a nominee, inter-
mediary, custodian, or agent on behalf of another indi-
vidual; 
‘‘(iii) an individual acting solely as an employee 
of a corporation, limited liability company, or other 
similar entity and whose control over or economic bene-
fits from such entity is derived solely from the employ-
ment status of the person; 
‘‘(iv) an individual whose only interest in a corpora-
tion, limited liability company, or other similar entity 
is through a right of inheritance; or 
‘‘(v) a creditor of a corporation, limited liability 
company, or other similar entity, unless the creditor 
meets the requirements of subparagraph (A). 
‘‘(4) DIRECTOR.—The term ‘Director’ means the Director 
of FinCEN. 
‘‘(5) FINCEN.—The term ‘FinCEN’ means the Financial 
Crimes Enforcement Network of the Department of the 
Treasury. 
‘‘(6) FINCEN IDENTIFIER.—The term ‘FinCEN identifier’ 
means the unique identifying number assigned by FinCEN 
to a person under this section. 
‘‘(7) FOREIGN PERSON.—The term ‘foreign person’ means 
a person who is not a United States person, as defined in 
section 7701(a) of the Internal Revenue Code of 1986. 
‘‘(8) INDIAN
TRIBE.—The term ‘Indian Tribe’ has the 
meaning given the term ‘Indian tribe’ in section 102 of the 
Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 
5130). 
‘‘(9) LAWFULLY ADMITTED FOR PERMANENT RESIDENCE.—The 
term ‘lawfully admitted for permanent residence’ has the 
meaning given the term in section 101(a) of the Immigration 
and Nationality Act (8 U.S.C. 1101(a)). 
‘‘(10) POOLED
INVESTMENT
VEHICLE.—The term ‘pooled 
investment vehicle’ means—
H. R. 6395—1220 
‘‘(A) any investment company, as defined in section 
3(a) of the Investment Company Act of 1940 (15 U.S.C. 
80a–3(a)); or 
‘‘(B) any company that— 
‘‘(i) would be an investment company under that 
section but for the exclusion provided from that defini-
tion by paragraph (1) or (7) of section 3(c) of that 
Act (15 U.S.C. 80a–3(c)); and 
‘‘(ii) is identified by its legal name by the applicable 
investment adviser in its Form ADV (or successor form) 
filed with the Securities and Exchange Commission. 
‘‘(11) REPORTING
COMPANY.—The term ‘reporting com-
pany’— 
‘‘(A) means a corporation, limited liability company, 
or other similar entity that is— 
‘‘(i) created by the filing of a document with a 
secretary of state or a similar office under the law 
of a State or Indian Tribe; or 
‘‘(ii) formed under the law of a foreign country 
and registered to do business in the United States 
by the filing of a document with a secretary of state 
or a similar office under the laws of a State or Indian 
Tribe; and 
‘‘(B) does not include— 
‘‘(i) an issuer— 
‘‘(I) of a class of securities registered under 
section 12 of the Securities Exchange Act of 1934 
(15 U.S.C. 78l); or 
‘‘(II) that is required to file supplementary 
and periodic information under section 15(d) of 
the Securities Exchange Act of 1934 (15 U.S.C. 
78o(d)); 
‘‘(ii) an entity— 
‘‘(I) established under the laws of the United 
States, an Indian Tribe, a State, or a political 
subdivision of a State, or under an interstate com-
pact between 2 or more States; and 
‘‘(II) that exercises governmental authority on 
behalf of the United States or any such Indian 
Tribe, State, or political subdivision; 
‘‘(iii) a bank, as defined in— 
‘‘(I) section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813); 
‘‘(II) section 2(a) of the Investment Company 
Act of 1940 (15 U.S.C. 80a–2(a)); or 
‘‘(III) section 202(a) of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b–2(a)); 
‘‘(iv) a Federal credit union or a State credit union 
(as those terms are defined in section 101 of the Fed-
eral Credit Union Act (12 U.S.C. 1752)); 
‘‘(v) a bank holding company (as defined in section 
2 of the Bank Holding Company Act of 1956 (12 U.S.C. 
1841)) or a savings and loan holding company (as 
defined in section 10(a) of the Home Owners’ Loan 
Act (12 U.S.C. 1467a(a))); 
‘‘(vi) a money transmitting business registered 
with the Secretary of the Treasury under section 5330;
H. R. 6395—1221 
‘‘(vii) a broker or dealer (as those terms are defined 
in section 3 of the Securities Exchange Act of 1934 
(15 U.S.C. 78c)) that is registered under section 15 
of that Act (15 U.S.C. 78o); 
‘‘(viii) an exchange or clearing agency (as those 
terms are defined in section 3 of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c)) that is registered 
under section 6 or 17A of that Act (15 U.S.C. 78f, 
78q–1); 
‘‘(ix) any other entity not described in clause (i), 
(vii), or (viii) that is registered with the Securities 
and Exchange Commission under the Securities 
Exchange Act of 1934 (15 U.S.C. 78a et seq.); 
‘‘(x) an entity that— 
‘‘(I) is an investment company (as defined in 
section 3 of the Investment Company Act of 1940 
(15 U.S.C. 80a–3)) or an investment adviser (as 
defined in section 202 of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b–2)); and 
‘‘(II) is registered with the Securities and 
Exchange Commission under the Investment Com-
pany Act of 1940 (15 U.S.C. 80a–1 et seq.) or 
the Investment Advisers Act of 1940 (15 U.S.C. 
80b–1 et seq.); 
‘‘(xi) an investment adviser— 
‘‘(I) described in section 203(l) of the Invest-
ment Advisers Act of 1940 (15 U.S.C. 80b–3(l)); 
and 
‘‘(II) that has filed Item 10, Schedule A, and 
Schedule B of Part 1A of Form ADV, or any suc-
cessor thereto, with the Securities and Exchange 
Commission; 
‘‘(xii) an insurance company (as defined in section 
2 of the Investment Company Act of 1940 (15 U.S.C. 
80a–2)); 
‘‘(xiii) an entity that— 
‘‘(I) is an insurance producer that is authorized 
by a State and subject to supervision by the insur-
ance commissioner or a similar official or agency 
of a State; and 
‘‘(II) has an operating presence at a physical 
office within the United States; 
‘‘(xiv)(I) a registered entity (as defined in section 
1a of the Commodity Exchange Act (7 U.S.C. 1a)); 
or 
‘‘(II) an entity that is— 
‘‘(aa)(AA) a futures commission merchant, 
introducing broker, swap dealer, major swap 
participant, commodity pool operator, or com-
modity trading advisor (as those terms are defined 
in section 1a of the Commodity Exchange Act (7 
U.S.C. 1a)); or 
‘‘(BB) a retail foreign exchange dealer, as 
described in section 2(c)(2)(B) of that Act (7 U.S.C. 
2(c)(2)(B)); and
H. R. 6395—1222 
‘‘(bb) registered with the Commodity Futures 
Trading 
Commission 
under 
the 
Commodity 
Exchange Act (7 U.S.C. 1 et seq.); 
‘‘(xv) a public accounting firm registered in accord-
ance with section 102 of the Sarbanes-Oxley Act of 
2002 (15 U.S.C. 7212); 
‘‘(xvi) a public utility that provides telecommuni-
cations services, electrical power, natural gas, or water 
and sewer services within the United States; 
‘‘(xvii) a financial market utility designated by the 
Financial Stability Oversight Council under section 804 
of the Payment, Clearing, and Settlement Supervision 
Act of 2010 (12 U.S.C. 5463); 
‘‘(xviii) any pooled investment vehicle that is oper-
ated or advised by a person described in clause (iii), 
(iv), (vii), (x), or (xi); 
‘‘(xix) any— 
‘‘(I) organization that is described in section 
501(c) of the Internal Revenue Code of 1986 (deter-
mined without regard to section 508(a) of such 
Code) and exempt from tax under section 501(a) 
of such Code, except that in the case of any such 
organization that loses an exemption from tax, 
such organization shall be considered to be contin-
ued to be described in this subclause for the 180- 
day period beginning on the date of the loss of 
such tax-exempt status; 
‘‘(II) political organization (as defined in sec-
tion 527(e)(1) of such Code) that is exempt from 
tax under section 527(a) of such Code; or 
‘‘(III) trust described in paragraph (1) or (2) 
of section 4947(a) of such Code; 
‘‘(xx) any corporation, limited liability company, 
or other similar entity that— 
‘‘(I) operates exclusively to provide financial 
assistance to, or hold governance rights over, any 
entity described in clause (xix); 
‘‘(II) is a United States person; 
‘‘(III) is beneficially owned or controlled exclu-
sively by 1 or more United States persons that 
are United States citizens or lawfully admitted 
for permanent residence; and 
‘‘(IV) derives at least a majority of its funding 
or revenue from 1 or more United States persons 
that are United States citizens or lawfully 
admitted for permanent residence; 
‘‘(xxi) any entity that— 
‘‘(I) employs more than 20 employees on a 
full-time basis in the United States; 
‘‘(II) filed in the previous year Federal income 
tax returns in the United States demonstrating 
more than $5,000,000 in gross receipts or sales 
in the aggregate, including the receipts or sales 
of— 
‘‘(aa) other entities owned by the entity; 
and
H. R. 6395—1223 
‘‘(bb) other entities through which the 
entity operates; and 
‘‘(III) has an operating presence at a physical 
office within the United States; 
‘‘(xxii) any corporation, limited liability company, 
or other similar entity of which the ownership interests 
are owned or controlled, directly or indirectly, by 1 
or more entities described in clause (i), (ii), (iii), (iv), 
(v), (vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv), (xv), 
(xvi), (xvii) (xix), or (xxi); 
‘‘(xxiii) any corporation, limited liability company, 
or other similar entity— 
‘‘(I) in existence for over 1 year; 
‘‘(II) that is not engaged in active business; 
‘‘(III) that is not owned, directly or indirectly, 
by a foreign person; 
‘‘(IV) that has not, in the preceding 12-month 
period, experienced a change in ownership or sent 
or received funds in an amount greater than $1,000 
(including all funds sent to or received from any 
source through a financial account or accounts in 
which the entity, or an affiliate of the entity, main-
tains an interest); and 
‘‘(V) that does not otherwise hold any kind 
or type of assets, including an ownership interest 
in any corporation, limited liability company, or 
other similar entity; 
‘‘(xxiv) any entity or class of entities that the Sec-
retary of the Treasury, with the written concurrence 
of the Attorney General and the Secretary of Homeland 
Security, has, by regulation, determined should be 
exempt from the requirements of subsection (b) because 
requiring beneficial ownership information from the 
entity or class of entities— 
‘‘(I) would not serve the public interest; and 
‘‘(II) would not be highly useful in national 
security, intelligence, and law enforcement agency 
efforts to detect, prevent, or prosecute money laun-
dering, the financing of terrorism, proliferation 
finance, serious tax fraud, or other crimes. 
‘‘(12) STATE.—The term ‘State’ means any State of the 
United States, the District of Columbia, the Commonwealth 
of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, American Samoa, Guam, the United States Virgin 
Islands, and any other commonwealth, territory, or possession 
of the United States. 
‘‘(13) UNIQUE
IDENTIFYING
NUMBER.—The term ‘unique 
identifying number’ means, with respect to an individual or 
an entity with a sole member, the unique identifying number 
from an acceptable identification document. 
‘‘(14) UNITED
STATES
PERSON.—The term ‘United States 
person’ has the meaning given the term in section 7701(a) 
of the Internal Revenue Code of 1986. 
‘‘(b) BENEFICIAL OWNERSHIP INFORMATION REPORTING.— 
‘‘(1) REPORTING.— 
‘‘(A) IN GENERAL.—In accordance with regulations pre-
scribed by the Secretary of the Treasury, each reporting
H. R. 6395—1225 
‘‘(i) establish partnerships with State, local, and 
Tribal governmental agencies; 
‘‘(ii) collect information described in paragraph (2) 
through existing Federal, State, and local processes 
and procedures; 
‘‘(iii) minimize burdens on reporting companies 
associated with the collection of the information 
described in paragraph (2), in light of the private 
compliance costs placed on legitimate businesses, 
including by identifying any steps taken to mitigate 
the costs relating to compliance with the collection 
of information; and 
‘‘(iv) collect information described in paragraph (2) 
in a form and manner that ensures the information 
is highly useful in— 
‘‘(I) facilitating important national security, 
intelligence, and law enforcement activities; and 
‘‘(II) confirming beneficial ownership informa-
tion provided to financial institutions to facilitate 
the compliance of the financial institutions with 
anti-money laundering, countering the financing 
of terrorism, and customer due diligence require-
ments under applicable law. 
‘‘(G) REGULATORY SIMPLIFICATION.—To simplify compli-
ance with this section for reporting companies and financial 
institutions, the Secretary of the Treasury shall ensure 
that the regulations prescribed by the Secretary under 
this subsection are added to part 1010 of title 31, Code 
of Federal Regulations, or any successor thereto. 
‘‘(2) REQUIRED INFORMATION.— 
‘‘(A) IN GENERAL.—In accordance with regulations pre-
scribed by the Secretary of the Treasury, a report delivered 
under paragraph (1) shall, except as provided in subpara-
graph (B), identify each beneficial owner of the applicable 
reporting company and each applicant with respect to that 
reporting company by— 
‘‘(i) full legal name; 
‘‘(ii) date of birth; 
‘‘(iii) current, as of the date on which the report 
is delivered, residential or business street address; and 
‘‘(iv)(I) unique identifying number from an accept-
able identification document; or 
‘‘(II) FinCEN identifier in accordance with require-
ments in paragraph (3). 
‘‘(B) REPORTING REQUIREMENT FOR EXEMPT ENTITIES 
HAVING
AN
OWNERSHIP
INTEREST.—If an exempt entity 
described in subsection (a)(11)(B) has or will have a direct 
or indirect ownership interest in a reporting company, the 
reporting company or the applicant— 
‘‘(i) shall, with respect to the exempt entity, only 
list the name of the exempt entity; and 
‘‘(ii) shall not be required to report the information 
with respect to the exempt entity otherwise required 
under subparagraph (A). 
‘‘(C) REPORTING
REQUIREMENT
FOR
CERTAIN
POOLED 
INVESTMENT VEHICLES.—Any corporation, limited liability 
company, or other similar entity that is an exempt entity
H. R. 6395—1226 
described in subsection (a)(11)(B)(xviii) and is formed under 
the laws of a foreign country shall file with FinCEN a 
written certification that provides identification informa-
tion of an individual that exercises substantial control over 
the pooled investment vehicle in the same manner as 
required under this subsection. 
‘‘(D) REPORTING
REQUIREMENT
FOR
EXEMPT
SUBSIDI-
ARIES.—In accordance with the regulations promulgated 
by the Secretary, any corporation, limited liability company, 
or other similar entity that is an exempt entity described 
in subsection (a)(11)(B)(xxii), shall, at the time such entity 
no longer meets the criteria described in subsection 
(a)(11)(B)(xxii), submit to FinCEN a report containing the 
information required under subparagraph (A). 
‘‘(E) REPORTING
REQUIREMENT
FOR
EXEMPT
GRAND-
FATHERED ENTITIES.—In accordance with the regulations 
promulgated by the Secretary, any corporation, limited 
liability company, or other similar entity that is an exempt 
entity described in subsection (a)(11)(B)(xxiii), shall, at the 
time such entity no longer meets the criteria described 
in subsection (a)(11)(B)(xxiii), submit to FinCEN a report 
containing the information required under subparagraph 
(A). 
‘‘(3) FINCEN IDENTIFIER.— 
‘‘(A) ISSUANCE OF FINCEN IDENTIFIER.— 
‘‘(i) IN GENERAL.—Upon request by an individual 
who has provided FinCEN with the information 
described in paragraph (2)(A) pertaining to the indi-
vidual, or by an entity that has reported its beneficial 
ownership information to FinCEN in accordance with 
this section, FinCEN shall issue a FinCEN identifier 
to such individual or entity. 
‘‘(ii) UPDATING OF INFORMATION.—An individual or 
entity with a FinCEN identifier shall submit filings 
with FinCEN pursuant to paragraph (1) updating any 
information described in paragraph (2) in a timely 
manner consistent with paragraph (1)(D). 
‘‘(iii) EXCLUSIVE
IDENTIFIER.—FinCEN shall not 
issue more than 1 FinCEN identifier to the same indi-
vidual or to the same entity (including any successor 
entity). 
‘‘(B) USE
OF
FINCEN
IDENTIFIER
FOR
INDIVIDUALS.— 
Any person required to report the information described 
in paragraph (2) with respect to an individual may instead 
report the FinCEN identifier of the individual. 
‘‘(C) USE OF FINCEN IDENTIFIER FOR ENTITIES.—If an 
individual is or may be a beneficial owner of a reporting 
company by an interest held by the individual in an entity 
that, directly or indirectly, holds an interest in the 
reporting company, the reporting company may report the 
FinCEN identifier of the entity in lieu of providing the 
information required by paragraph (2)(A) with respect to 
the individual. 
‘‘(4) REGULATIONS.—The Secretary of the Treasury shall— 
‘‘(A) by regulation prescribe procedures and standards 
governing any report under paragraph (2) and any FinCEN 
identifier under paragraph (3); and
H. R. 6395—1227 
‘‘(B) in promulgating the regulations under subpara-
graph (A) to the extent practicable, consistent with the 
purposes of this section— 
‘‘(i) minimize burdens on reporting companies asso-
ciated with the collection of beneficial ownership 
information, including by eliminating duplicative 
requirements; and 
‘‘(ii) ensure the beneficial ownership information 
reported to FinCEN is accurate, complete, and highly 
useful. 
‘‘(5) EFFECTIVE DATE.—The requirements of this subsection 
shall take effect on the effective date of the regulations pre-
scribed by the Secretary of the Treasury under this subsection, 
which shall be promulgated not later than 1 year after the 
date of enactment of this section. 
‘‘(6) REPORT.—Not later than 1 year after the effective 
date described in paragraph (5), and annually thereafter for 
2 years, the Secretary of the Treasury shall submit to Congress 
a report describing the procedures and standards prescribed 
to carry out paragraph (2), which shall include an assessment 
of— 
‘‘(A) the effectiveness of those procedures and stand-
ards in minimizing reporting burdens (including through 
the elimination of duplicative requirements) and strength-
ening the accuracy of reports submitted under paragraph 
(2); and 
‘‘(B) any alternative procedures and standards pre-
scribed to carry out paragraph (2). 
‘‘(c) RETENTION AND DISCLOSURE OF BENEFICIAL OWNERSHIP 
INFORMATION BY FINCEN.— 
‘‘(1) RETENTION
OF
INFORMATION.—Beneficial ownership 
information required under subsection (b) relating to each 
reporting company shall be maintained by FinCEN for not 
fewer than 5 years after the date on which the reporting com-
pany terminates. 
‘‘(2) DISCLOSURE.— 
‘‘(A) PROHIBITION.—Except as authorized by this sub-
section and the protocols promulgated under this sub-
section, beneficial ownership information reported under 
this section shall be confidential and may not be disclosed 
by— 
‘‘(i) an officer or employee of the United States; 
‘‘(ii) an officer or employee of any State, local, 
or Tribal agency; or 
‘‘(iii) an officer or employee of any financial institu-
tion or regulatory agency receiving information under 
this subsection. 
‘‘(B) SCOPE OF DISCLOSURE BY FINCEN.—FinCEN may 
disclose beneficial ownership information reported pursu-
ant to this section only upon receipt of— 
‘‘(i) a request, through appropriate protocols— 
‘‘(I) from a Federal agency engaged in national 
security, intelligence, or law enforcement activity, 
for use in furtherance of such activity; or 
‘‘(II) from a State, local, or Tribal law enforce-
ment agency, if a court of competent jurisdiction,
H. R. 6395—1228 
including any officer of such a court, has author-
ized the law enforcement agency to seek the 
information in a criminal or civil investigation; 
‘‘(ii) a request from a Federal agency on behalf 
of a law enforcement agency, prosecutor, or judge of 
another country, including a foreign central authority 
or competent authority (or like designation), under an 
international treaty, agreement, convention, or official 
request made by law enforcement, judicial, or prosecu-
torial authorities in trusted foreign countries when 
no treaty, agreement, or convention is available— 
‘‘(I) issued in response to a request for assist-
ance in an investigation or prosecution by such 
foreign country; and 
‘‘(II) that— 
‘‘(aa) requires compliance with the disclo-
sure and use provisions of the treaty, agree-
ment, or convention, publicly disclosing any 
beneficial ownership information received; or 
‘‘(bb) limits the use of the information for 
any purpose other than the authorized inves-
tigation or national security or intelligence 
activity; 
‘‘(iii) a request made by a financial institution sub-
ject to customer due diligence requirements, with the 
consent of the reporting company, to facilitate the 
compliance of the financial institution with customer 
due diligence requirements under applicable law; or 
‘‘(iv) a request made by a Federal functional regu-
lator or other appropriate regulatory agency consistent 
with the requirements of subparagraph (C). 
‘‘(C) FORM AND MANNER OF DISCLOSURE TO FINANCIAL 
INSTITUTIONS AND REGULATORY AGENCIES.—The Secretary 
of the Treasury shall, by regulation, prescribe the form 
and manner in which information shall be provided to 
a financial institution under subparagraph (B)(iii), which 
regulation shall include that the information shall also 
be available to a Federal functional regulator or other 
appropriate regulatory agency, as determined by the Sec-
retary, if the agency— 
‘‘(i) is authorized by law to assess, supervise, 
enforce, or otherwise determine the compliance of the 
financial institution with the requirements described 
in that subparagraph; 
‘‘(ii) uses the information solely for the purpose 
of conducting the assessment, supervision, or author-
ized investigation or activity described in clause (i); 
and 
‘‘(iii) enters into an agreement with the Secretary 
providing for appropriate protocols governing the safe-
keeping of the information. 
‘‘(3) APPROPRIATE
PROTOCOLS.—The Secretary of the 
Treasury shall establish by regulation protocols described in 
paragraph (2)(A) that— 
‘‘(A) protect the security and confidentiality of any 
beneficial ownership information provided directly by the 
Secretary;
H. R. 6395—1229 
‘‘(B) require the head of any requesting agency, on 
a non-delegable basis, to approve the standards and proce-
dures utilized by the requesting agency and certify to the 
Secretary semi-annually that such standards and proce-
dures are in compliance with the requirements of this 
paragraph; 
‘‘(C) require the requesting agency to establish and 
maintain, to the satisfaction of the Secretary, a secure 
system in which such beneficial ownership information pro-
vided directly by the Secretary shall be stored; 
‘‘(D) require the requesting agency to furnish a report 
to the Secretary, at such time and containing such informa-
tion as the Secretary may prescribe, that describes the 
procedures established and utilized by such agency to 
ensure the confidentiality of the beneficial ownership 
information provided directly by the Secretary; 
‘‘(E) require a written certification for each authorized 
investigation or other activity described in paragraph (2) 
from the head of an agency described in paragraph 
(2)(B)(i)(I), or their designees, that— 
‘‘(i) states that applicable requirements have been 
met, in such form and manner as the Secretary may 
prescribe; and 
‘‘(ii) at a minimum, sets forth the specific reason 
or reasons why the beneficial ownership information 
is relevant to an authorized investigation or other 
activity described in paragraph (2); 
‘‘(F) require the requesting agency to limit, to the 
greatest extent practicable, the scope of information sought, 
consistent with the purposes for seeking beneficial owner-
ship information; 
‘‘(G) restrict, to the satisfaction of the Secretary, access 
to beneficial ownership information to whom disclosure 
may be made under the provisions of this section to only 
users at the requesting agency— 
‘‘(i) who are directly engaged in the authorized 
investigation or activity described in paragraph (2); 
‘‘(ii) whose duties or responsibilities require such 
access; 
‘‘(iii) who— 
‘‘(I) have undergone appropriate training; or 
‘‘(II) use staff to access the database who have 
undergone appropriate training; 
‘‘(iv) who use appropriate identity verification 
mechanisms to obtain access to the information; and 
‘‘(v) who are authorized by agreement with the 
Secretary to access the information; 
‘‘(H) require the requesting agency to establish and 
maintain, to the satisfaction of the Secretary, a permanent 
system of standardized records with respect to an auditable 
trail of each request for beneficial ownership information 
submitted to the Secretary by the agency, including the 
reason for the request, the name of the individual who 
made the request, the date of the request, any disclosure 
of beneficial ownership information made by or to the 
agency, and any other information the Secretary of the 
Treasury determines is appropriate;
H. R. 6395—1230 
‘‘(I) require that the requesting agency receiving bene-
ficial ownership information from the Secretary conduct 
an annual audit to verify that the beneficial ownership 
information received from the Secretary has been accessed 
and used appropriately, and in a manner consistent with 
this paragraph and provide the results of that audit to 
the Secretary upon request; 
‘‘(J) require the Secretary to conduct an annual audit 
of the adherence of the agencies to the protocols established 
under this paragraph to ensure that agencies are 
requesting and using beneficial ownership information 
appropriately; and 
‘‘(K) provide such other safeguards which the Secretary 
determines (and which the Secretary prescribes in regula-
tions) to be necessary or appropriate to protect the confiden-
tiality of the beneficial ownership information. 
‘‘(4) VIOLATION OF PROTOCOLS.—Any employee or officer 
of a requesting agency under paragraph (2)(B) that violates 
the protocols described in paragraph (3), including unauthorized 
disclosure or use, shall be subject to criminal and civil penalties 
under subsection (h)(3)(B). 
‘‘(5) DEPARTMENT OF THE TREASURY ACCESS.— 
‘‘(A) IN
GENERAL.—Beneficial ownership information 
shall be accessible for inspection or disclosure to officers 
and employees of the Department of the Treasury whose 
official duties require such inspection or disclosure subject 
to procedures and safeguards prescribed by the Secretary 
of the Treasury. 
‘‘(B) TAX
ADMINISTRATION
PURPOSES.—Officers and 
employees of the Department of the Treasury may obtain 
access to beneficial ownership information for tax adminis-
tration purposes in accordance with this subsection. 
‘‘(6) REJECTION
OF
REQUEST.—The Secretary of the 
Treasury— 
‘‘(A) shall reject a request not submitted in the form 
and manner prescribed by the Secretary under paragraph 
(2)(C); and 
‘‘(B) may decline to provide information requested 
under this subsection upon finding that— 
‘‘(i) the requesting agency has failed to meet any 
other requirement of this subsection; 
‘‘(ii) the information is being requested for an 
unlawful purpose; or 
‘‘(iii) other good cause exists to deny the request. 
‘‘(7) SUSPENSION.—The Secretary of the Treasury may sus-
pend or debar a requesting agency from access for any of 
the grounds set forth in paragraph (6), including for repeated 
or serious violations of any requirement under paragraph (2). 
‘‘(8) 
SECURITY
PROTECTIONS.—The 
Secretary 
of 
the 
Treasury shall maintain information security protections, 
including encryption, for information reported to FinCEN under 
subsection (b) and ensure that the protections— 
‘‘(A) are consistent with standards and guidelines 
developed under subchapter II of chapter 35 of title 44; 
and
H. R. 6395—1231 
‘‘(B) incorporate Federal information system security 
controls for high-impact systems, excluding national secu-
rity systems, consistent with applicable law to prevent 
the loss of confidentiality, integrity, or availability of 
information that may have a severe or catastrophic adverse 
effect. 
‘‘(9) REPORT BY THE SECRETARY.—Not later than 1 year 
after the effective date of the regulations prescribed under 
this subsection, and annually thereafter for 5 years, the Sec-
retary of the Treasury 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, which— 
‘‘(A) may include a classified annex; and 
‘‘(B) shall, with respect to each request submitted 
under paragraph (2)(B)(i)(II) during the period covered by 
the report, and consistent with protocols established by 
the Secretary that are necessary to protect law enforcement 
sensitive, tax-related, or classified information, include— 
‘‘(i) the date on which the request was submitted; 
‘‘(ii) the source of the request; 
‘‘(iii) whether the request was accepted or rejected 
or is pending; and 
‘‘(iv) a general description of the basis for rejecting 
the such request, if applicable. 
‘‘(10) AUDIT BY THE COMPTROLLER GENERAL.—Not later than 
1 year after the effective date of the regulations prescribed 
under this subsection, and annually thereafter for 6 years, 
the Comptroller General of the United States shall— 
‘‘(A) audit the procedures and safeguards established 
by the Secretary of the Treasury under those regulations, 
including duties for verification of requesting agencies sys-
tems and adherence to the protocols established under 
this subsection, to determine whether such safeguards and 
procedures meet the requirements of this subsection and 
that the Department of the Treasury is using beneficial 
ownership information appropriately in a manner con-
sistent with this subsection; and 
‘‘(B) submit to the Secretary of the Treasury, the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate, and the Committee on Financial Services of the 
House of Representatives a report that contains the 
findings and determinations with respect to any audit con-
ducted under this paragraph. 
‘‘(11) DEPARTMENT OF THE TREASURY TESTIMONY.— 
‘‘(A) IN GENERAL.—Not later than March 31 of each 
year for 5 years beginning in 2022, the Director shall 
be made available to testify before the Committee on 
Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Rep-
resentatives, or an appropriate subcommittee thereof, 
regarding FinCEN issues, including, specifically, issues 
relating to— 
‘‘(i) anticipated plans, goals, and resources nec-
essary for operations of FinCEN in implementing the 
requirements of the Anti-Money Laundering Act of 
2020 and the amendments made by that Act;
H. R. 6395—1232 
‘‘(ii) the adequacy of appropriations for FinCEN 
in the current and the previous fiscal year to— 
‘‘(I) ensure that the requirements and obliga-
tions imposed upon FinCEN by the Anti-Money 
Laundering Act of 2020 and the amendments made 
by that Act are completed as efficiently, effectively, 
and expeditiously as possible; and 
‘‘(II) 
provide 
for 
robust 
and 
effective 
implementation and enforcement of the provisions 
of the Anti-Money Laundering Act of 2020 and 
the amendments made by that Act; 
‘‘(iii) strengthen FinCEN management efforts, as 
necessary and as identified by the Director, to meet 
the requirements of the Anti-Money Laundering Act 
of 2020 and the amendments made by that Act; 
‘‘(iv) provide for the necessary public outreach to 
ensure 
the 
broad 
dissemination 
of 
information 
regarding any new program requirements provided for 
in the Anti-Money Laundering Act of 2020 and the 
amendments made by that Act, including— 
‘‘(I) educating the business community on the 
goals and operations of the new beneficial owner-
ship database; and 
‘‘(II) disseminating to the governments of coun-
tries that are allies or partners of the United 
States information on best practices developed by 
FinCEN related to beneficial ownership informa-
tion retention and use; 
‘‘(v) any policy recommendations that could facili-
tate and improve communication and coordination 
between the private sector, FinCEN, and the Federal, 
State, and local agencies and entities involved in imple-
menting innovative approaches to meet their obliga-
tions under the Anti-Money Laundering Act of 2020 
and the amendments made by that Act, the Bank 
Secrecy Act (as defined in section 6003 of the Anti- 
Money Laundering Act of 2020), and other anti-money 
laundering compliance laws; and 
‘‘(vi) any other matter that the Director determines 
is appropriate. 
‘‘(B) 
TESTIMONY
CLASSIFICATION.—The 
testimony 
required under subparagraph (A)— 
‘‘(i) shall be submitted in unclassified form; and 
‘‘(ii) may include a classified portion. 
‘‘(d) AGENCY COORDINATION.— 
‘‘(1) IN
GENERAL.—The Secretary of the Treasury shall, 
to the greatest extent practicable, update the information 
described in subsection (b) by working collaboratively with other 
relevant Federal, State, and Tribal agencies. 
‘‘(2) INFORMATION FROM RELEVANT FEDERAL, STATE, AND 
TRIBAL AGENCIES.—Relevant Federal, State, and Tribal agen-
cies, as determined by the Secretary of the Treasury, shall, 
to the extent practicable, and consistent with applicable legal 
protections, cooperate with and provide information requested 
by FinCEN for purposes of maintaining an accurate, complete, 
and highly useful database for beneficial ownership informa-
tion.
H. R. 6395—1233 
‘‘(3) REGULATIONS.—The Secretary of the Treasury, in con-
sultation with the heads of other relevant Federal agencies, 
may promulgate regulations as necessary to carry out this 
subsection. 
‘‘(e) NOTIFICATION OF FEDERAL OBLIGATIONS.— 
‘‘(1) FEDERAL.—The Secretary of the Treasury shall take 
reasonable steps to provide notice to persons of their obligations 
to report beneficial ownership information under this section, 
including by causing appropriate informational materials 
describing such obligations to be included in 1 or more forms 
or other informational materials regularly distributed by the 
Internal Revenue Service and FinCEN. 
‘‘(2) STATES AND INDIAN TRIBES.— 
‘‘(A) IN GENERAL.—As a condition of the funds made 
available under this section, each State and Indian Tribe 
shall, not later than 2 years after the effective date of 
the regulations promulgated under subsection (b)(4), take 
the following actions: 
‘‘(i) The secretary of a State or a similar office 
in each State or Indian Tribe responsible for the forma-
tion or registration of entities created by the filing 
of a public document with the office under the law 
of the State or Indian Tribe shall periodically, including 
at the time of any initial formation or registration 
of an entity, assessment of an annual fee, or renewal 
of any license to do business in the United States 
and in connection with State or Indian Tribe corporate 
tax assessments or renewals— 
‘‘(I) notify filers of their requirements as 
reporting companies under this section, including 
the requirements to file and update reports under 
paragraphs (1) and (2) of subsection (b); and 
‘‘(II) provide the filers with a copy of the 
reporting company form created by the Secretary 
of the Treasury under this subsection or an inter-
net link to that form. 
‘‘(ii) The secretary of a State or a similar office 
in each State or Indian Tribe responsible for the forma-
tion or registration of entities created by the filing 
of a public document with the office under the law 
of the State or Indian Tribes shall update the websites, 
forms relating to incorporation, and physical premises 
of the office to notify filers of their requirements as 
reporting companies under this section, including pro-
viding an internet link to the reporting company form 
created by the Secretary of the Treasury under this 
section. 
‘‘(B) NOTIFICATION
FROM
THE
DEPARTMENT
OF
THE 
TREASURY.—A notification under clause (i) or (ii) of 
subparagraph (A) shall explicitly state that the notification 
is on behalf of the Department of the Treasury for the 
purpose of preventing money laundering, the financing of 
terrorism, proliferation financing, serious tax fraud, and 
other financial crime by requiring nonpublic registration 
of business entities formed or registered to do business 
in the United States.