[Congressional Record Volume 166, Number 128 (Tuesday, July 21, 2020)]
[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.

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