Jul 11, 2019


The Senate is discussing a new piece of legislation to enhance and modernize federal anti-money laundering (AML) and combating the financing of terrorism (CFT) laws. The Improving Laundering Laws and Increasing Comprehensive Information Tracking of Criminal Activity in Shell Holdings Act (the “ILLICIT CASH Act”) proposes new reporting requirements for beneficial ownership information as well as improving resources available to the Financial Crimes Enforcement Network (FinCEN). Currently, the onus is on financial institutions to identify beneficial owners (“BO”) at the time a covered entity opens an account. The Act would require entities to file BO information at the time of incorporation (entities already incorporated will be required to file its BO information within two years of enactment) with the FinCEN. FinCEN and other federal regulators will also be required to issue joint regulations to establish a no-action letter process for inquiries regarding specific conduct, which shall include a statement as to whether there is any intention of taking an enforcement action against the person with respect to such conduct. To read more on the proposed Act click here: https://www.cotton.senate.gov/files/documents/2%20Illicit-Cash-Act-Discussion-Draft-June%202019.pdf