The opaque nature of American LLCs allows illicit money to enter the U.S. financial system and real estate market. These dirty funds can then fund international crime, terrorism, and more. Requiring companies to disclose their beneficial ownership will help fight money laundering and help law enforcement investigate and prosecute financial crimes, and won’t be an onerous burden that deters law-abiding people from founding new LLCs.
Existing regulations and rules already provide enough information on companies’ beneficial ownership. This bill would impose duplicative burdensome reporting requirements that’ll hurt those who can least afford to comply with them — small businesses. It also raises serious privacy and cybersecurity concerns, as it collects a lot of personal information and stores it with the federal government, creating a massive target for hackers.