The National Defense Authorization Act is expected to pass Congress within the next few days. But Congress shouldn’t pass the bill without the bipartisan amendment establishing a federal beneficial ownership register.
The two top senators on the Banking Committee, Mike Crapo and Sherrod Brown, following up on work by Sens. Tom Cotton and Mark Warner, want law enforcement to know who or what entity owns particular businesses.
America has long been a prized safe haven for illicit cash. Put another way, this nation is an ideal target for money launderers. But whereas the Department of Justice has robust means to prosecute money launderers once they are identified, the absence of a beneficial ownership register means that many hostile actors avoid triggering an investigation in the first place by hiding in a sea of names. Criminals and hostile state actors (such as China, Iran, and Russia) use shell companies to hide ownership interests.
That’s what this register aims to stop. Were it signed into law, the register would be housed under the Treasury’s Financial Crimes Enforcement Network. Adding the amendment should be a no-brainer. And for many Democrats, Republicans, and the White House (which supports the amendment), it is.
Opponents argue that the register would impose undue and excessive burdens on small businesses by requiring them to fill out a form on establishing or altering their commercial ownership interests. This is not so — the burden is, in fact, minimal. The form would only require four points of basic identifying information, such as a name and an address. It would be simple to fill out and file, whereas the benefits would be vast.
From previous reports such as the 2016 Panama Papers, we know that corrupt officials and criminals use shell companies on a truly impressive scale. This register would allow the government to charge far more criminals and seize much more of their assets. To be clear, this is not about going after the small mom and pop store in Kansas. It’s about targeting those who buy up businesses worth tens of millions of dollars in order to park and clean their ill-gotten cash.
With Democrats, Republicans, and President Trump on board, getting this amendment onto the defense bill and into law should be a true no-brainer.
Correction: A previous version of this article suggested that the compliance form would need to be completed annually. However, the form would only be required on the formation or alteration of a commercial business interest. The Washington Examiner regrets the error.
