[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5631 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 5631

To amend title 31, United States Code, to provide for access to certain 
                   beneficial ownership information.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            December 19 (legislative day, December 16), 2024

 Mr. Daines (for himself and Mr. Van Hollen) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend title 31, United States Code, to provide for access to certain 
                   beneficial ownership information.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ownership Clarity Act''.

SEC. 2. ACCESS TO BENEFICIAL OWNERSHIP INFORMATION.

    Section 5336 of title 31, United States Code, is amended--
            (1) by redesignating subsection (j) as subsection (k); and
            (2) by inserting after subsection (i) the following:
    ``(j) Access to Beneficial Ownership Information.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Access license.--The term `access license' 
                means a license to access beneficial ownership 
                information in accordance with this subsection.
                    ``(B) Covered entity.--The term `covered entity' 
                means a financial institution that provides, or an 
                entity that assists a financial institution in 
                providing, screening services.
                    ``(C) Permitted personnel.--The term `permitted 
                personnel' means personnel of a covered entity who are 
                permitted to access beneficial ownership information in 
                accordance with this subsection.
                    ``(D) Permitted purpose.--The term `permitted 
                purpose' means the use of beneficial ownership 
                information for screening services.
                    ``(E) Screening services.--The term `screening 
                services' means the risk management procedures and 
                activities undertaken by permitted personnel for the 
                protection of the United States national security from 
                international illicit actors and corrupt foreign 
                officials who seek to exploit the financial systems of 
                the United States by engaging in illicit activity such 
                as serious tax fraud, human and drug trafficking, money 
                laundering, financing terrorism.
            ``(2) Access licenses.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, the Director shall establish 
                a process by which covered entities may apply to the 
                Director for an access license.
                    ``(B) Determination.--The Director may not issue an 
                access license to a covered entity unless the Director 
                determines that--
                            ``(i) access to beneficial ownership 
                        information under this subsection is predicated 
                        upon a reasonable concern for United States 
                        national security and United States economic 
                        stability, by identifying international illicit 
                        actors and corrupt foreign officials and 
                        preventing international illicit activity such 
                        as--
                                    ``(I) international terrorist 
                                financing;
                                    ``(II) any activity engaged in by 
                                an agent of the Government of Iran, 
                                North Korea, Syria, or any other 
                                government the Secretary of State has 
                                determined has repeatedly provided 
                                support for acts of international 
                                terrorism for purposes of--
                                            ``(aa) section 
                                        1754(c)(1)(A)(i) of the Export 
                                        Control Reform Act of 2018 (50 
                                        U.S.C. 4813(c)(1)(A)(i));
                                            ``(bb) section 620A of the 
                                        Foreign Assistance Act of 1961 
                                        (22 U.S.C. 2371);
                                            ``(cc) section 40(d) of the 
                                        Arms Export Control Act (22 
                                        U.S.C. 2780(d)); or
                                            ``(dd) any other provision 
                                        of law;
                                    ``(III) any activity engaged in by 
                                any individual or entity included on 
                                the list of specially designated 
                                nationals and blocked persons 
                                maintained by the Office of Foreign 
                                Assets Control of the Department of the 
                                Treasury; or
                                    ``(IV) any other illicit financial 
                                conduct directly or indirectly 
                                supporting a transnational criminal 
                                organization, transnational drug 
                                trafficking organization, or 
                                transnational money laundering 
                                organization;
                            ``(ii) the covered entity limits access to 
                        and use of the beneficial ownership information 
                        to permitted personnel of the covered entity in 
                        connection with, or to support, screening 
                        services; and
                            ``(iii) the use, disclosure, and retention 
                        of the beneficial ownership information is 
                        strictly limited to a permitted purpose.
                    ``(C) Duration.--
                            ``(i) In general.--An access license issued 
                        under this subsection shall expire on the date 
                        that is 2 years after the date on which the 
                        license is issued.
                            ``(ii) Renewal.--An expired access license 
                        may be renewed for 2-year periods in accordance 
                        with the process established under this 
                        paragraph.
            ``(3) Regulations.--The Director shall promulgate 
        regulations governing the use, disclosure, and retention of the 
        beneficial ownership information accessed pursuant to an access 
        license issued under this subsection.''.
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