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.