WASHINGTON — A bipartisan group of eight senators on Thursday formally introduced a bill to reform anti-money laundering laws that bankers and credit unions have argued are outdated.
The bill, which was initially floated as draft legislation in June, would require companies to disclose their true owners at the time of incorporation. The bill was initially supported by Sens. Mark Warner, D-Va., Doug Jones, D-Ala., Tom Cotton, R-Ark., and Mike Rounds, R-S.D., and now has four additional co-sponsors: Sens. Bob Menendez, D-N.J., Catherine Cortez Masto, D-Nev., John Kennedy, R-La., and Jerry Moran, R-Kan.
Senator John Kennedy, a Republican from Louisiana, questions Christopher Wray, director of the Federal Bureau of Investigation (FBI) nominee for U.S. President Donald Trump, not pictured, during a Senate Judiciary Committee nomination hearing in Washington, D.C., U.S., on Wednesday, July 12, 2017. Wray pledged strict independence if confirmed to head the FBI, as senators focused on his ability to pursue investigations independently amid revelations about a meeting the president's son held with a Russian lawyer during last years campaign. Photographer: Andrew Harrer/Bloomberg
Andrew Harrer/Bloomberg
The introduction of the Illicit Cash Act in the Senate comes after the House Financial Services Committee advanced a similar measure, known as the Corporate Transparency Act, out of committee in June. Both bills would require companies to report their true owners to the Financial Crimes Enforcement Network at the point of incorporation.
The industry has long pushed for Congress to shift the onus for reporting beneficial ownership information away from the financial institutions, arguing that it is too costly, though some Republicans and small businesses have raised concerns that the legislation would be overly burdensome.
Supporters of the legislation sought to alleviate small business concerns over burdensome new requirements at a hearing in June, describing some of the rhetoric as "over-the-top."
Bankers have also hoped for Congress to raise the thresholds for submitting Suspicious Activity Reports and Currency Transaction Reports, despite pushback from law enforcement. But the legislation introduced Thursday simply directs Treasury to review the thresholds and determine if they need to be updated.
The fintech, which powers debt collections for banks and credit unions, received a "strategic investment" from Vista Equity Partners to expand into agentic AI.
Bankers face a "critical limitation" due to the vast number of oversight agencies and institutions, like social media companies and telecom institutions, that a fraudster might touch on their way to scam a consumer.
The payments company has used an acquisition of digital asset firm Bridge to gain ground, reminiscent of how fintechs have honed in on banks' payment turf for years.
President Donald Trump asked the Supreme Court to reverse a lower court ruling allowing Federal Reserve Gov. Lisa Cook to remain in office pending the outcome of her lawsuit challenging Trump's move to fire her late last month.
The Toronto-based bank named Rahul Nalgirkar as incoming finance chief. Nalgirkar, who joined BMO in 2022 from Fifth Third, will succeed the retiring Tayfun Tuzun, who came to BMO in 2020 after working at Fifth Third.
