FinCEN–SBA Coordination on Beneficial Ownership Registration Act | ChamberLight
Bills · S 1995
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1995Commerce
FinCEN–SBA Coordination on Beneficial Ownership Registration Act
INTRO JUN 9· LAST ACTION JUN 9
READING
7MIN
COSPONSORS
2
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it helps small businesses navigate a new and complex federal regulation: the Corporate Transparency Act. This law requires millions of businesses to report their true owners to the government to combat financial crimes like money laundering and terrorism financing. Without clear guidance, many small businesses might struggle to understand and comply, potentially leading to fines or making it harder for law enforcement to track illegal activities. If this bill becomes law, it will create a coordinated effort to educate businesses, making it easier for them to meet their obligations and reducing the chances of them falling victim to scams related to these new requirements. If it doesn't pass, small businesses may continue to face significant challenges in understanding and complying with the beneficial ownership reporting rules.
KEY PROVISIONS
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PROVISION 01
Requires FinCEN and SBA to establish a written agreement within 90 days to jointly disseminate information about beneficial ownership reporting requirements.
This formalizes collaboration between two key agencies to improve outreach and support for small businesses regarding a new federal regulation.
PROVISION 02
Mandates that information about beneficial ownership rules be available in English, Spanish, and other languages, and that the SBA website links to FinCEN's relevant pages.
This increases accessibility and ease of access to crucial compliance information for a diverse range of small business owners.
PROVISION 03
Requires the agencies to develop a plan to identify and combat scams or fraudulent schemes related to beneficial ownership reporting and educate businesses about them.
This protects small businesses from deceptive practices targeting new regulatory requirements, safeguarding them from financial harm.
PROVISION 04
Requires FinCEN and SBA to host in-person town halls and webinars featuring FinCEN staff to explain beneficial ownership compliance.
This provides direct, expert guidance and interactive learning opportunities for small businesses to understand complex regulations.
PROVISION 05
Mandates regular meetings (every six months) between FinCEN and SBA leadership to review compliance challenges and ongoing coordination.
This ensures continuous evaluation and improvement of outreach efforts and addresses evolving challenges for small business compliance.
This bill matters because it helps small businesses navigate a new and complex federal regulation: the Corporate Transparency Act. This law requires millions of businesses to report their true owners to the government to combat financial crimes like money laundering and terrorism financing. Without clear guidance, many small businesses might struggle to understand and comply, potentially leading to fines or making it harder for law enforcement to track illegal activities. If this bill becomes law, it will create a coordinated effort to educate businesses, making it easier for them to meet their obligations and reducing the chances of them falling victim to scams related to these new requirements. If it doesn't pass, small businesses may continue to face significant challenges in understanding and complying with the beneficial ownership reporting rules.
KEY PROVISIONS
AI-extracted
high
Requires FinCEN and SBA to establish a written agreement within 90 days to jointly disseminate information about beneficial ownership reporting requirements.
This formalizes collaboration between two key agencies to improve outreach and support for small businesses regarding a new federal regulation.
med
Mandates that information about beneficial ownership rules be available in English, Spanish, and other languages, and that the SBA website links to FinCEN's relevant pages.
This increases accessibility and ease of access to crucial compliance information for a diverse range of small business owners.
high
Requires the agencies to develop a plan to identify and combat scams or fraudulent schemes related to beneficial ownership reporting and educate businesses about them.
This protects small businesses from deceptive practices targeting new regulatory requirements, safeguarding them from financial harm.
med
Requires FinCEN and SBA to host in-person town halls and webinars featuring FinCEN staff to explain beneficial ownership compliance.
This provides direct, expert guidance and interactive learning opportunities for small businesses to understand complex regulations.
med
Mandates regular meetings (every six months) between FinCEN and SBA leadership to review compliance challenges and ongoing coordination.
This ensures continuous evaluation and improvement of outreach efforts and addresses evolving challenges for small business compliance.
Not later than 30 days after the date of enactment.
Administrator and Director shall meet to discuss the contents of the memorandum of understanding.
Not later than 90 days after the date of enactment.
Administrator and Director shall enter into a written memorandum of understanding.
Not later than 7 days after entering into the memorandum.
Director and Administrator shall make the memorandum publicly available.
Not later than 6 months after entering into the memorandum, and every 6 months thereafter.
Director (or a designee) and Administrator (or a designee) shall review issues related to the memorandum, compliance challenges, and reasons for non-compliance.
GLOSSARY
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Beneficial Ownership Information (BOI)
Information about the real people who ultimately own or control a company, even if their names aren't on the official registration documents.
Corporate Transparency Act (CTA)
A federal law that requires many companies to report their beneficial ownership information to the government to help prevent financial crimes.
FinCEN (Financial Crimes Enforcement Network)
A bureau of the U.S. Department of the Treasury that collects and analyzes information about financial transactions to combat money laundering, terrorist financing, and other financial crimes.
Small Business Administration (SBA)
A U.S. government agency that supports entrepreneurs and small businesses through various programs, resources, and advocacy.
Memorandum of Understanding (MOU)
A written agreement between two or more parties that describes their intentions to work together on a common goal, without being a legally binding contract.
Reporting Company
A corporation, limited liability company, or similar entity that is required to report its beneficial ownership information to FinCEN under federal law.
Resource Partner
ACTION TIMELINE
2 EVENTS
JUN 9, 25
Introduced in Senate
INTROREFERRAL
JUN 9, 25
Read twice and referred to the Committee on Small Business and Entrepreneurship.
Organizations like Small Business Development Centers, Women's Business Centers, and Veteran Business Outreach Centers that work with the SBA to provide assistance and advice to small businesses.
Illicit Activity
Illegal actions or practices, especially those involving financial crimes like money laundering, fraud, or financing terrorism.
