Corporate Transparency Act of 2019

Bill: 116-hr-2513
Sponsor: Rep. Maloney, Carolyn B. [D-NY-12]
Introduced: 2019-05-03 in the House
Policy area: Finance and Financial Sector
Subjects: Business ethics
Business records
Civil actions and liability
Corporate finance and management
Criminal investigation, prosecution, interrogation
Criminal procedure and sentencing
Fraud offenses and financial crimes
Government information and archives
Law enforcement administration and funding
Terrorism
Trade secrets and economic espionage
U.S. and foreign investments

Summary:
action_date: 2019-05-03
text: 

Corporate Transparency Act of 2019 
 
This bill requires certain new and existing small corporations and limited liability companies to disclose information about their beneficial owners. A beneficial owner is an individual who (1) exercises substantial control over a corporation or limited liability company, (2) owns 25% or more of the interest in a corporation or limited liability company, or (3) receives substantial economic benefits from the assets of a corporation or limited liability company. 
Specifically, if certain entities apply to form a corporation or limited liability company, they must file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN). Furthermore, certain existing corporations and limited liability companies must file this information with FinCEN two years after the implementation of final regulations required under this bill. 
The bill imposes a civil penalty and authorizes criminal penalties&#8212;a fine, a prison term for up to three years, or both&#8212;for providing false or fraudulent beneficial ownership information or for willfully failing to provide complete or updated beneficial ownership information. 
 
The Government Accountability Office must study and report on (1) the availability of beneficial ownership information for other legal entities (e.g., partnerships), and (2) the effectiveness of incorporation practices implemented under this bill. 

action_date: 2019-10-08
text: 

Corporate Transparency Act of 2019 
 
 
This bill requires certain new and existing small corporations and limited liability companies to disclose information about their beneficial owners. A beneficial owner is an individual who (1) exercises substantial control over a corporation or limited liability company, (2) owns 25% or more of the interest in a corporation or limited liability company, or (3) receives substantial economic benefits from the assets of a corporation or limited liability company. 
Specifically, if certain entities apply to form a corporation or limited liability company, they must file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN). Furthermore, certain existing corporations and limited liability companies must file this information with FinCEN two years after the implementation of final regulations required under this bill. 
The bill imposes a civil penalty and authorizes criminal penalties&#8212;a fine, a prison term for up to three years, or both&#8212;for providing false or fraudulent beneficial ownership information or for willfully failing to provide complete or updated beneficial ownership information. 
 
The Government Accountability Office must study and report on (1) the availability of beneficial ownership information for other legal entities (e.g., partnerships), and (2) the effectiveness of incorporation practices implemented under this bill. 

action_date: 2019-10-22
text: 
This bill generally addresses the disclosure of corporate ownership and the prevention of money laundering and the financing of terrorism.
 
DIVISION A--CORPORATE TRANSPARENCY ACT OF 2019 
 

Corporate Transparency Act of 2019 

 
This division requires certain new and existing small corporations and limited liability companies to disclose information about their beneficial owners. A beneficial owner is an individual who (1) exercises substantial control over a corporation or limited liability company, (2) owns 25% or more of the interest in a corporation or limited liability company, or (3) receives substantial economic benefits from the assets of a corporation or limited liability company. 
Specifically, if certain entities apply to form a corporation or limited liability company, they must file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN). Furthermore, certain existing corporations and limited liability companies must file this information with FinCEN two years after the implementation of final regulations required under this division. 
The division imposes a civil penalty and authorizes criminal penalties&#8212;a fine, a prison term for up to three years, or both&#8212;for providing false or fraudulent beneficial ownership information or for willfully failing to provide complete or updated beneficial ownership information. 
The Government Accountability Office must study and report on (1) the availability of beneficial ownership information for other legal entities (e.g., partnerships), and (2) the effectiveness of incorporation practices implemented under this division. 
DIVISION B--COUNTER ACT OF 2019 
 
Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act of 2019 or the COUNTER Act of 2019 
 
This division generally revises requirements related to anti-money-laundering and counter-terrorism-financing laws. 
Among other things, the division 
 
establishes new offices within financial regulatory agencies related to privacy and civil liberties; 
 
creates programs within the Department of the Treasury to enable foreign and domestic outreach regarding these laws; 
 
allows for increased information sharing between law enforcement, financial institutions, and financial regulators; and 
 
revises whistleblower incentives related to actions brought by FinCEN.
 
 
The division also increases penalties for violations of anti-money-laundering and counter-terrorism-financing laws, requires antiquities dealers to comply with these laws, and requires the reporting of beneficial ownership information to FinCEN in certain commercial real estate transactions. 
Every five years, Treasury must update the threshold amounts for currency transaction reports to reflect inflation. 
 


Legislative actions:
action_date: 2019-10-23
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2019-10-22
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2019-10-22
text: On passage Passed by the Yeas and Nays: 249 - 173 (Roll no. 577).
action_date: 2019-10-22
text: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 249 - 173 (Roll no. 577).
action_date: 2019-10-22
text: On motion to recommit with instructions Failed by recorded vote: 197 - 224 (Roll no. 576).
action_date: 2019-10-22
text: The previous question on the motion to recommit with instructions was ordered without objection.
action_date: 2019-10-22
text: DEBATE - The House proceeded with 10 minutes on the Davidson (OH) motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to require a court-issued subpoena for specified requests in the underlying bill.
action_date: 2019-10-22
text: Mr. Davidson (OH) moved to recommit with instructions to the Committee on Financial Services. (text: CR H8368)
action_date: 2019-10-22
text: The House adopted the amendments en gross as agreed to by the Committee of the Whole House on the state of the Union.
action_date: 2019-10-22
text: The House rose from the Committee of the Whole House on the state of the Union to report H.R. 2513.
action_date: 2019-10-22
text: The House resolved into Committee of the Whole House on the state of the Union for further consideration.
action_date: 2019-10-22
text: Considered as unfinished business. (consideration: CR H8365-8370)
action_date: 2019-10-22
text: Committee of the Whole House on the state of the Union rises leaving H.R. 2513 as unfinished business.
action_date: 2019-10-22
text: On motion that the Committee rise Agreed to by voice vote.
action_date: 2019-10-22
text: Ms. Waters moved that the Committee rise.
action_date: 2019-10-22
text: POSTPONED PROCEEDINGS - At the conclusion of debate on the Davidson (OH) amendment, the Chair put the question on adoption of the amendment, and by voice vote announced that the noes had prevailed. Ms. Waters demanded a recorded vote, and the Chair postponed further proceedings on adoption of the amendment until a time to be announced.
action_date: 2019-10-22
text: DEBATE - Pursuant to the provisions of H. Res. 646, the Committee of the Whole proceeded with 10 minutes of debate on the Davidson (OH) amendment No. 5.
action_date: 2019-10-22
text: POSTPONED PROCEEDINGS - At the conclusion of debate on the Carolyn B. Maloney (NY) amendment, the Chair put the question on adoption of the amendment, and by voice vote announced that the ayes had prevailed. Mr. McHenry demanded a recorded vote, and the Chair postponed further proceedings on adoption of the amendment until a time to be announced.
action_date: 2019-10-22
text: DEBATE - Pursuant to the provisions of H. Res. 646, the Committee of the Whole proceeded with 10 minutes of debate on the Carolyn B. Maloney (NY) amendment No. 4.
action_date: 2019-10-22
text: DEBATE - Pursuant to the provisions of H. Res. 646, the Committee of the Whole proceeded with 10 minutes of debate on the Brown (MD) amendment No. 3.
action_date: 2019-10-22
text: DEBATE - Pursuant to the provisions of H. Res. 646, the Committee of the Whole proceeded with 10 minutes of debate on the Hill (AR) amendment No. 2.
action_date: 2019-10-22
text: POSTPONED PROCEEDINGS - At the conclusion of debate on the Burgess amendment, the Chair put the question on adoption of the amendment, and by voice vote announced that the ayes had prevailed. Ms. Waters demanded a recorded vote, and the Chair postponed further proceedings on adoption of the amendment until a time to be announced.
action_date: 2019-10-22
text: DEBATE - Pursuant to the provisions of H.Res. 646, the Committee of the Whole proceeded with 10 minutes of debate on the Burgess amendment No. 1.
action_date: 2019-10-22
text: GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 2513.
action_date: 2019-10-22
text: The Speaker designated the Honorable Lauren Underwood to act as Chairwoman of the Committee.
action_date: 2019-10-22
text: House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 646 and Rule XVIII.
action_date: 2019-10-22
text: Rule provides for consideration of H.R. 2513 with 1 hour of general debate. Motion to recommit with or without instructions allowed. Measure will be considered read. Specified amendments are in order.
action_date: 2019-10-22
text: Considered under the provisions of rule H. Res. 646. (consideration: CR H8316-8339)
action_date: 2019-10-22
text: Rule H. Res. 646 passed House.
action_date: 2019-10-21
text: Rules Committee Resolution H. Res. 646 Reported to House. Rule provides for consideration of H.R. 2513 with 1 hour of general debate. Motion to recommit with or without instructions allowed. Measure will be considered read. Specified amendments are in order.
action_date: 2019-10-08
text: Placed on the Union Calendar, Calendar No. 180.
action_date: 2019-10-08
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 116-227.
action_date: 2019-10-08
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 116-227.
action_date: 2019-06-11
text: Ordered to be Reported (Amended) by the Yeas and Nays: 43 - 16.
action_date: 2019-06-11
text: Committee Consideration and Mark-up Session Held.
action_date: 2019-05-03
text: Referred to the House Committee on Financial Services.
action_date: 2019-05-03
text: Introduced in House
action_date: 2019-05-03
text: Introduced in House