Policy Issues

Roundtable and Trade Associations Submit Comments Opposing Title IV of S. 2563, the Illicit Cash Act, as Burdensome to Small Business

November 13, 2019

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The signatories support the goal of preventing wrongdoers from exploiting United States corporations and limited liability companies (LLCs) for criminal gain, yet strongly oppose Title IV of S. 2563, the Improving Laundering Laws and Increasing Comprehensive Information Tracking of Criminal Activity in Shell Holdings Act, as introduced, also known as the ILLICIT CASH Act.  

Title IV of the ILLICIT CASH Act would impose duplicative, burdensome reporting burdens on millions of small businesses in the United States and threatens the privacy of law-abiding, legitimate small business owners.  

The Financial Crimes Enforcement Network’s (FinCEN) Customer Due Diligence (CDD) rule became applicable on May 11, 2018. The CDD rule requires financial institutions to collect the “beneficial ownership” information of business customers when they open accounts. This legislation would attempt to shift the reporting requirements from large banks – those best equipped to handle reporting requirements – to millions of small businesses – those least equipped to handle reporting requirements. 

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