Sponsors (35)
The bill reduces paperwork and compliance costs for small businesses and financial firms and trims modest federal administrative expense, but at the cost of weakening a tool used to detect and investigate anonymous companies—raising national‑security, financial‑crime, and fraud risks that could impose higher costs on banks, victims, and taxpayers.
Small business owners: eliminated beneficial-ownership reporting reduces paperwork and ongoing reporting costs for many small businesses and closely held companies.
Financial institutions: removal of the new beneficial-ownership reporting requirement lowers compliance obligations and administrative burden for banks and other regulated firms.
Taxpayers: modest federal administrative and enforcement costs are reduced over time if reporting/enforcement responsibilities are scaled back.
Law enforcement and national security actors: repeal eliminates a federal beneficial‑ownership database that aided identification of shell-company ownership, making money‑laundering and illicit‑finance investigations harder and slowing cross‑jurisdictional cooperation.
Banks and other firms: increased risk from undetected illicit‑finance activity could raise fraud, compliance, and reputational exposures for financial institutions.
Victims of financial crime and the public: anonymous companies may be used to hide assets and hinder recovery, which can increase losses to victims and costs borne by taxpayers.
Based on analysis of 2 sections of legislative text.
Repeals the Corporate Transparency Act, removing federal beneficial‑ownership reporting requirements and making technical conforming changes to AML statutes.
Introduced January 15, 2025 by Thomas Hawley Tuberville · Last progress January 15, 2025
Repeals the Corporate Transparency Act and its amendments and makes related technical and conforming changes to federal anti‑money‑laundering statutes. It also establishes a short title for the Act. The repeal removes the federal beneficial‑ownership information reporting regime created in the 2021 National Defense Authorization Act and adjusts cross‑references and a few provisions in Title 31 of the U.S. Code and Title LXV of the Anti‑Money Laundering Act of 2020 to reflect that repeal.