WILLIAM M. (MAC) THORNBERRY NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2021; Congressional Record Vol. 166, No. 128
(Extensions of Remarks - July 21, 2020)
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[Extensions of Remarks]
[Pages E657-E658]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
WILLIAM M. (MAC) THORNBERRY NATIONAL DEFENSE AUTHORIZATION ACT FOR
FISCAL YEAR 2021
______
speech of
HON. J. FRENCH HILL
of arkansas
in the house of representatives
Monday, July 20, 2020
Mr. HILL of Arkansas. Madam Speaker, I rise today in opposition to
Division F, the Corporate Transparency Act provision, within Amendment
499 to H.R. 6395, the William M. (Mac) Thornberry National Defense
Authorization Act (NDAA) for Fiscal Year 2021.
This amendment is part of a larger of package of amendments that the
House is voting for en bloc. Many of those provisions I support. I
would like to emphasize that my remarks only apply to certain
provisions within Amendment 499.
Specifically, I do not support Division F of the amendment which is
the text that relates to H.R. 2513 which passed the House floor on
October 22, 2019. The legislation addresses how we might combat illicit
finance activities through the collection of beneficial ownership
information.
I did not support the legislation when it passed the House floor, and
I do not support it as a provision in amendment 499. In fact, I have
long advocated against this policy since I was elected to Congress over
five years ago.
The collection of beneficial ownership has been debated in Congress
for a long time as the ability to set up legal entities without
accurate beneficial ownership information, has long represented a key
vulnerability in the U.S. financial system.
Congresswoman Maloney, the leader of the legislation, has been trying
to pass a bill that would collect beneficial ownership for over a
decade.
[[Page E658]]
I agree that knowing where money is coming from, where it is going,
and in whose hand it sits is vital to U.S. national security.
However, I cannot support the text as written as it places
significant burden on small businesses. The legislation creates a new
regulatory database within Financial Crimes Enforcement Network
(FinCEN), a law enforcement unit, which most small businesses have
never even heard of. And, even more alarming, if they don't comply,
they could face a penalty of up to $10,000 and a prison sentence of up
to 3 years.
This could create significant unintended consequences for a large
portion of the economy's commerce.
I believe there is a better path forward, which is why I have long
supported aligning tax filings with collection of beneficial ownership
information--a regulation small businesses already understand.
Furthermore, it is critical to note that the beneficial ownership
information is already required and is already being collected. The
Customer Due Diligence (CDD) Rule, which took effect in May 2018
requires banksto identify and verify the identity of the beneficial
owners of companies opening accounts.
The CDD rule is operational and effective. Why would we upend this
regulation, that has been working for over two years, to place
unnecessary burdens on our local dry cleaners, our farming community,
or the realtor that sold you your house, or any other small business?
These are the types of individuals that will have to comply FinCEN, an
organization they have never heard of, if this amendment becomes law.
We should be able to find a solution to collect this information that
alleviates the bank burden while not subjecting small businesses to
unnecessarily complicated reporting requirements.
For these reasons, I cannot support Ms. Maloney's amendment.
____________________