News & Events

Biden Budget Request Boosts Funding for Treasury Agency Tasked with Combatting Financial Crime

Financial Crimes Enforcement Network (FinCEN) Would Receive Increased Funding to Implement the Corporate Transparency Act

WASHINGTON, DC – The FACT Coalition welcomed the inclusion of increased funding for the Financial Crimes Enforcement Network (FinCEN) in President Biden’s topline FY22 budget request released today. The budget request includes $191 million for FinCEN, $64 million above the FY21 enacted level, to “help combat the use of complex corporate structures to shield illegal activity”.

“We applaud the Biden Administration’s move to increase funding to combat corruption and financial crimes through robust implementation of the Corporate Transparency Act,” said Ian Gary, executive director of the FACT Coalition. “This law is the most important anti-money laundering legislation passed by the United States in the last 20 years. Congress must quickly appropriate the resources needed to set up the database, which will collect and store basic identifying information on the true owners of US companies. This historic reform will prevent abuse of the US financial system by criminals and kleptocrats around the world.”

The Corporate Transparency Act, enacted on January 1, takes the simple, yet effective step to require corporations and limited liability companies (LLCs) to disclose to law enforcement and others with legally mandated anti-money laundering responsibilities (e.g., financial institutions) information on who is the real, natural person (“beneficial owner”) that owns or controls an entity at the point of formation, and update such information upon any change.

“Treasury Secretary Yellen recently testified in Congress that implementation of the Corporate Transparency Act would be a top priority for the Biden Administration. It’s gratifying to see this commitment backed by a funding request for the resources FinCEN so desperately needs to meet its vital national security and crime-fighting mission,” Gary said. “Anonymous shell companies have been routinely flagged by experts as the biggest weakness in US anti-money laundering safeguards.” 

FACT Coalition member Global Financial Integrity released a report last month arguing that FinCEN is “struggling to meet the nation’s emerging money laundering challenges”. The new resources proposed in the Biden Administration’s top line budget are an important step to resource the agency to meet these challenges.

FinCEN is currently requesting public comments to shape the regulations to implement the Corporate Transparency Act. The legislation is backed hundreds of national security experts, police and prosecutors, banks and credit unions, CEOs, the real estate sector, large businesses, small business owners, faith groups, anti-human trafficking groups, human rights organizations, global development NGOs, anti-corruption advocates, labor unions, and conservative and liberal think tanks.


Notes to Editor:

  • Click here to read the Biden Administration’s top line budget request released today.
  • Click here to read a FACT sheet on the Corporate Transparency Act.
  • Click here to read the Global Financial Integrity report “Enhancing National Security by Re-imagining FinCEN”.
  • Click here to see the FinCEN Advanced Notice of Proposed Rulemaking for the Corporate Transparency Act.