House Financial Services will hold a hearing on Wednesday, March 13 at 2 p.m on financial crimes and BSA reforms. The hearing titled, “Promoting Corporate Transparency: Examining Legislative Proposals to Detect and Deter Financial Crime” will be a one-panel hearing with the following witnesses:

  • Jacob Cohen, former director, office of stakeholder engagement, FinCEN
  • Dennis M. Lormel, president and CEO, DML Associates, LLC
  • Amit Sharma, CEO, FinClusive
  • Dr. Gary Shiffman, Founder and CEO, Giant Oak, Inc.

Sources close to the LSCU report that “the bills are bi-partisan…we’re actually going to legislate.”  During the hearing, a draft bill sponsored by Rep. Maxine Waters (D-CA) will be reviewed that would impose new rules regulating high-dollar transactions, increase fines, and expand whistleblower protections. There are also FinCEN reforms in the draft bill particularly regarding the use of technology.

A second bill sponsored by Rep. Carolyn Maloney (D-NY) will be reviewed which would address the “beneficial ownership” issue. This bill requires an entity that forms a corporation or limited liability company to disclose information about its beneficial owners. A beneficial owner is an individual who exercises substantial control over a corporation or limited liability company or has a substantial interest in or receives substantial economic benefits from the assets of a corporation or limited liability company.

Finally, HR 389 by Rep. Steve Lynch (D-MA) is on the agenda for discussion which establishes a foreign fraud notification program. This bill amends the Federal Credit Union Act to allow a credit union to extend a member business loan with respect to a one-to four-family dwelling, regardless of whether the dwelling is the member’s primary residence. Under current law, a member business loan may be extended with respect to such a dwelling only if it is the member’s primary residence.

Read the memo on the meeting here.