H.R. 3416 (112th): Incorporation Transparency and Law Enforcement Assistance Act

Introduced:
Nov 14, 2011 (112th Congress, 2011–2013)
Sponsor:
Rep. Carolyn Maloney [D-NY14]
Status:
Died (Referred to Committee)

The bill’s title was written by the bill’s sponsor. H.R. stands for House of Representatives bill.

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Status

This bill was introduced on November 14, 2011, in a previous session of Congress, but was not enacted.

Progress
Introduced Nov 14, 2011
Referred to Committee Nov 14, 2011
Cosponsors
2 cosponsors (2D) (show)
Committees

House Financial Services

The committee chair determines whether a bill will move past the committee stage.

Full Title

To amend title 31, United States Code, to ensure that persons who form corporations or limited liability companies in the United States disclose the beneficial owners of those corporations or limited liability companies, in order to prevent wrongdoers from exploiting United States corporations and limited liability companies for criminal gain, to assist law enforcement in detecting, preventing, and punishing terrorism, money laundering, and other misconduct involving United States corporations and limited liability companies, and for other purposes.

Summary

No summaries available.

Text

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Last updated Nov 14, 2011.
35 pages

Primary Source

View on THOMAS (The Library of Congress)

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Citation

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GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

11/14/2011--Introduced.
Incorporation Transparency and Law Enforcement Assistance Act - Directs the Secretary of the Treasury to:
(1) issue regulations requiring corporations and limited liability companies formed in a state that does not have a formation system providing for the disclosure, updating, and verification of beneficial ownership information to file with the Secretary information about their beneficial ownership as required by this Act; and
(2) provide such information pursuant to a civil or criminal subpoena or summons from a federal or state agency or a congressional committee or a written request by a federal agency on behalf of another country or by the Financial Crimes Enforcement Network. Sets forth requirements for state formation systems regarding beneficial ownership information, including:
(1) the identification of beneficial owners by name, address, and identifying number from a passport or driver's license; and
(2) the updating of lists of beneficial owners not later than 60 days after any change in information.
Requires retention of such information for five years after a corporation or limited liability company terminates.
Authorizes a state that maintains a formal licensing system for formation agents to permit applicants to form a corporation or limited liability company or such a corporation or company to provide such information to such an agent residing in that state instead of to that state directly.
Specifies exempt entities, including businesses with more than 20 full-time employees in the United States and over $10 million in gross receipts or sales.
Prescribes penalties for:
(1) providing false or fraudulent beneficial ownership information;
(2) willfully failing to provide complete or updated information;
(3) disclosing the existence of a subpoena, summons, or other request for beneficial ownership information, with exceptions; and
(4) a formation agent failing to obtain or maintain credible, legible, and updated beneficial ownership information.
Requires the Secretary to publish a proposed and final rule to require persons engaged in the business of forming corporations to establish anti-money laundering programs.
Requires the Comptroller General to study and report to Congress on:
(1) state requirements for the disclosure of beneficial ownership information;
(2) whether the lack of such information has impeded investigations into entities suspected of terrorism, money laundering, and other criminal activities;
(3) whether the failure to require beneficial ownership information for partnerships and trusts formed or registered in the United States has elicited international criticism and what steps the United States has taken or is planning to take in response; and
(4) the effectiveness of incorporation practices implemented under this Act in aiding law enforcement.

House Republican Conference Summary

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No summary available.

House Democratic Caucus Summary

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The bill contains the following citations to other parts of U.S. law:

United States Code

The United States Code is the compilation of permanent laws enacted by Congress. Temporary and other non-permanent laws do not appear in the United States Code. (About half of the United States Code is the law itself, called positive law. The other half is merely a compilation of the laws but has no legal significance.)

Other Citations

  • 31 U.S.C. Chapter 53