CUNA wrote in support of legislation Thursday that would modernize anti-money laundering/countering the financing of terrorism (AML/CFT). The Counter Terrorism and Illicit Finance Act was introduced by Reps. Steve Pearce (R-N.M.) and Blaine Luetkemeyer (R-Mo.).
The bill establishes a beneficial ownership reporting requirement on closely held, non-public legal entities.
“Currently, the lack of a beneficial ownership requirement allows criminals, money launderers, kleptocrats, and terrorist financiers, to obscure their identities from law enforcement,” the letter reads. “The federal government and, importantly, the law enforcement community do not have ready access to such information to assist them with their investigations into alleged money laundering and human trafficking activities, a critical gap in the current regime. We are pleased to see this easily exploited loophole addressed in the draft bill.”
It would also provide financial institutions with access to reported information to assist them with their customer due diligence compliance efforts and appropriately coordinates the definition of beneficial ownership with FinCEN’s rule.
Other provisions in the bill would require the Treasury secretary to