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House Passes Bipartisan Financial Services Bill to Crack Down on Shell Companies and Fight Money Laundering and Terrorist Finance

Today, the U.S. House of Representatives passed H.R. 2513, The Corporate Transparency Act of 2019, bipartisan legislation introduced by Congresswoman Carolyn Maloney (D-NY), Chair of the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, and Congressman Peter King (R-NY). It was passed by a vote of 249-173.

H.R. 2513 would close significant loopholes that are commonly abused by bad actors and will make it harder for terrorists, traffickers, corrupt officials, and other criminals to hide, launder, move, and use their money. This legislation requires corporations and Limited Liability Companies (LLCs) to disclose their beneficial owners to the Financial Crimes Enforcement Network, ending the ability of criminals, terrorists, and kleptocrats to abuse anonymous shell companies for illicit activities.

In June, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, convened a full Committee markup of H.R. 2513 and seven other bills. H.R. 2513 was passed out of Committee by a vote of 43-16.

H.R. 2513 includes the text of H.R. 2514, The Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act (COUNTER Act), introduced by Congressman Emanuel Cleaver (D-MO), Chairman of the Subcommittee on National Security, International Development, and Monetary Policy, and Rep. Steve Stivers (R-OH). The COUNTER Act passed out of Committee by a vote of 55-0 in May, and represents the first major improvements to the Bank Secrecy Act’s anti-money laundering and combatting the financing of terrorism (AML-CFT) provisions since 2001.

H.R. 2513 is supported by a diverse range of organizations including law enforcement entities, financial institutions, government agencies and over 100 NGOs.


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