Sponsors (194)
Repealing beneficial‑ownership reporting reduces privacy and compliance burdens for businesses and owners but raises substantial risks to national security, increases potential fraud losses for consumers, and weakens law enforcement's investigative tools.
Owners of small businesses and closely held companies would avoid new beneficial-ownership disclosure requirements and associated compliance costs.
Taxpayers would have greater privacy because private business ownership information would no longer be federally collected under the Corporate Transparency Act.
Financial institutions would face reduced reporting burdens and lower compliance costs if beneficial-ownership reporting is repealed.
Federal authorities and the broader public would face increased risk that money laundering, tax fraud, and terrorist financing go undetected because a key federal reporting tool would be removed.
Consumers and taxpayers could face higher compliance costs or direct losses from fraud if illicit actors exploit reduced ownership transparency.
State and local law enforcement and regulators would lose a centralized federal data source for investigations, potentially hindering prosecutions and enforcement actions.
Based on analysis of 2 sections of legislative text.
Repeals the Corporate Transparency Act, removing federal beneficial‑ownership reporting and related conforming edits to 31 U.S.C. and the Anti‑Money Laundering Act of 2020.
Introduced January 15, 2025 by Warren Davidson · Last progress January 15, 2025
Repeals the Corporate Transparency Act and all amendments made by that Act, and makes conforming and technical changes to federal anti‑money‑laundering statutes, including edits to provisions in 31 U.S.C. and the Anti‑Money Laundering Act of 2020. The repeal would eliminate the federal beneficial‑ownership reporting requirement that had required many corporations, LLCs, and similar entities to submit ownership information to a central registry maintained by FinCEN. The change removes a compliance obligation for covered entities and eliminates the centralized beneficial‑ownership database used by regulators and law enforcement, with likely effects on privacy, compliance costs for small entities, financial institutions' customer due diligence, and U.S. anti‑money‑laundering and counter‑terrorist financing efforts. The text does not specify an effective date.