Sec. 6502. GAO AND TREASURY STUDIES ON BENEFICIAL OWNERSHIP INFORMATION REPORTING REQUIREMENTS

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## 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 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 shall conduct a study and submit to Congress a report assessing the effectiveness of incorporation practices implemented 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 ####

(2)strengthening the capability of national security, intelligence, 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 simplified 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 paragraph (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 community, shall conduct a study and submit to Congress a report that— ####

(1)reviews the regulated status, related reporting requirements, 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, proliferation 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 beneficial 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 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 partnerships, 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, securities 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).