Sec. 403. Beneficial ownership studies
418 words·~2 min read·
/bill/116/s/2563/is/section-403·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 2 years after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study and submit to Congress a report— identifying each State that has procedures that enable persons to form or register under the laws of the State partnerships, trusts, or other legal entities, and the nature of those procedures; 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 that term is defined in section 5334(a) of title 31, United States Code, as added by section 401 of this Act) or beneficiaries of such entities, and the nature of the required information; evaluating whether the lack of available beneficial ownership information for partnerships, trusts, or other legal entities— raises concerns about the involvement of such entities in terrorism, money laundering, tax evasion, securities fraud, or other misconduct; and has impeded investigations into entities suspected of such misconduct; and 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 what steps, if any, the United States has taken or is planning to take in response.
Not later than 5 years after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study and submit to the Congress a report assessing the effectiveness of incorporation practices implemented under this Act, and the amendments made by this Act, in— providing law enforcement agencies with prompt access to reliable, useful, and complete beneficial ownership information; and strengthening the capability of law enforcement agencies to— combat incorporation abuses and civil and criminal misconduct; and detect, prevent, or punish terrorism, money laundering, tax evasion, or other misconduct.
The Secretary, in consultation with the Attorney General of the United States shall conduct a study to evaluate— the feasibility of adopting FinCEN identifying numbers or other simplified reporting methods in order to facilitate a simplified beneficial ownership regime for reporting companies; 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; the costs associated with imposing any new verification requirements on FinCEN; and the resources necessary to implement any such changes.
The Secretary shall present findings to the relevant committees of jurisdiction and provide recommendations for carrying out these findings.