We can never underestimate the Chinese Communist Party. Right now, they are operating shell companies throughout the United States that jeopardize our national security, steal our intellectual property, and undermine our economy – all without detection by the U.S. government.
In 2020, Congress passed the Corporate Transparency Act to root out these shell companies by establishing new reporting requirements for businesses; however, during implementation by the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), several changes were made that deviated significantly from the bill passed by Congress. Most notably, companies were given an option to state that they were “unable to obtain” or “unable to identify” their true ownership. The inclusion of these options undermines the effectiveness of the law by allowing bad actors to obscure the identity of nefarious owners.
My bill, the Protect Small Businesses and Prevent Illicit Financial Activity Act, will fix this loophole to crack down on China’s shell companies. The bill will also make it easier for legitimate American businesses to comply with reporting requirements by extending the deadline while the government fixes this egregious loophole.
Read the bill text here:
FORM: https://nunn.house.gov/SL/protect-small-businesses-and-prevent-illicit-financial-activity