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Thursday formally introduced a bill to reform anti-money laundering laws that bankers and credit unions have argued are outdated.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 Federal Reserve governor said the uptick in buy now pay later repayment issues is likely a sign that consumers don't understand the terms of the emerging credit offering.
The agency unveiled several deregulatory measures at a Tuesday board meeting, including a measure to tie regulatory thresholds to inflation, one creating a supervisory appeals office that reports to the board and withdrawal of a Biden-era rule on industrial loan companies.
CEO Robin Vince refused to comment on "rumors or speculation" about a potential merger between the custody banking giant and its smaller rival, Northern Trust. He also said that the bar for BNY to engage in M&A is "very high."
As the $4.6 trillion-asset bank looks to deploy its excess capital, investing in growth is the top priority. But there aren't many tempting acquisition opportunities for the megabank right now, CEO Jamie Dimon said Tuesday.
House Financial Services Committee Chairman French Hill promised to begin combing through Dodd-Frank to find areas for deregulation, while the panel's ranking member made it clear that Democrats would fight for the Consumer Financial Protection Bureau.
