A group of 51 State Banking trade associations sent a letter to the House Financial Services Committee voicing support for the Corporate Transparency Act (HR 2513). The full letter can be read below or downloaded here.
____________________
June 10, 2019
The Honorable Maxine Waters
Chairwoman
House Committee on Financial Services
Washington, D.C. 20515
The Honorable Patrick McHenry
Ranking Member
House Committee on Financial Services
Washington, D.C. 20515
Dear Chairwoman Waters and Ranking Member McHenry:
The undersigned state bankers associations write to express our strong support for H.R. 2513, the Corporate Transparency Act of 2019. This measure will bring needed clarity and transparency to the beneficial ownership requirements.
We commend Representative Carolyn Maloney (D-NY), Chairwoman of the Subcommittee on Investor Protection, Entrepreneurship and Capital Markets, for her attention to this important issue. H.R. 2513 is a bipartisan piece of legislation that would require corporations and limited liability companies to self-report beneficial owners to the Financial Crime Enforcement Network (FinCEN) at the time of formation of the entity. Further, the bill would require all companies within two years to file such information with FinCEN.
A single federal registry would help ease the burden on companies because the beneficial ownership information would be located in one place. A company would not be required to provide that information to a financial institution each and every time it opens a new account. The information also would be readily accessible to law enforcement and would provide an easy way for financial institutions to verify beneficial ownership information. While financial institutions go to great lengths to know their customer and follow all requirements to know the beneficial owner, there is no formal system in place to ensure that shell companies are not hiding money to facilitate illegal activities. And while this legislation may be transformative for the United States, it would simply bring the U.S. in line with other developed countries.
We support H.R. 2513 and urge the members of the Committee to pass this important measure.
Sincerely,
Alabama Bankers Association
Alaska Bankers Association
Arizona Bankers Association
Arkansas Bankers Association
Colorado Bankers Association
Connecticut Bankers Association
Delaware Bankers Association
Florida Bankers Association
Georgia Bankers Association
Hawaii Bankers Association
Idaho Bankers Association
Illinois Bankers Association
Indiana Bankers Association
Iowa Bankers Association
Kansas Bankers Association
Kentucky Bankers Association
Louisiana Bankers Association
Maine Bankers Association
Maryland Bankers Association
Massachusetts Bankers Association
Michigan Bankers Association
Minnesota Bankers Association
Mississippi Bankers Association
Missouri Bankers Association
Montana Bankers Association
Nebraska Bankers Association
Nevada Bankers Association
New Hampshire Bankers Association
New Jersey Bankers Association
New Mexico Bankers Association
New York Bankers Association
North Carolina Bankers Association
North Dakota Bankers Association
Ohio Bankers League
Oklahoma Bankers Association
Oregon Bankers Association
Pennsylvania Bankers Association
Puerto Rico Bankers Association
Rhode Island Bankers Association
South Carolina Bankers Association
South Dakota Bankers Association
Tennessee Bankers Association
Texas Bankers Association
Utah Bankers Association
Vermont Bankers Association
Virginia Bankers Association
Washington Bankers Association
Western Bankers Association
West Virginia Bankers Association
Wisconsin Bankers Association
Wyoming Bankers Association
cc: Members of the House Committee on Financial Services