FinCEN–SBA Coordination on Beneficial Ownership Registration Act
- Sponsor
- Sen. Markey, Edward J. [D-MA]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Jun 9, 2025
Bottom line
The bill aims to improve small business compliance with federal beneficial ownership reporting rules by requiring enhanced, structured coordination and outreach between FinCEN and the SBA.
What it actually does
This bill mandates that the Financial Crimes Enforcement Network (FinCEN) and the Small Business Administration (SBA) enter into a formal Memorandum of Understanding (MOU) to coordinate the dissemination of information regarding beneficial ownership reporting requirements to small businesses. It requires specific outreach activities, including multi-language materials, website links, anti-scam initiatives, and joint town halls/webinars, leveraging the SBA's existing network. The bill also establishes a recurring 30-day reporting requirement to Congress on compliance efforts and outcomes.
Proponents argue
Supporters argue that this bill is crucial for ensuring small businesses, particularly those unaware of federal regulations, understand and comply with the Corporate Transparency Act (CTA). They contend that leveraging the SBA's established outreach network and resource partners is the most effective way to disseminate complex information, thereby strengthening national security, combating illicit finance, and reducing the burden on small businesses through clear guidance. Full implementation of the CTA is seen as vital to counter malign actors and protect U.S. interests.
Opponents contend
Potential critics might argue that this bill adds an unnecessary layer of bureaucratic requirements and frequent reporting, potentially increasing administrative overhead for federal agencies without a guaranteed significant increase in compliance. Some may also contend that FinCEN and the SBA already possess the authority and capability to conduct such outreach without a legislative mandate, or that the underlying CTA itself is overly burdensome for small businesses, and this bill merely reinforces that burden rather than alleviating it.
The bill is short and clearly written, making it highly accessible for readers to understand its provisions and implications within a short timeframe.
Section 1
Short Title
This section establishes the official short title of the Act as the "FinCEN-SBA Coordination on Beneficial Ownership Registration Act." This title clearly indicates the bill's primary purpose: to facilitate coordination between FinCEN and the Small Business Administration regarding beneficial ownership registration.
Supporters argue
Establishing a clear short title is standard legislative practice that aids in public discourse, legislative tracking, and easy reference to the bill's core purpose.
Critics contend
No specific opposition is typically raised against this provision, as it is a procedural element of legislative drafting.
Tradeoffs
None.
Section 2
Congressional Findings on Beneficial Ownership
This section outlines Congress's findings, stating that malign actors use shell companies for illicit activities, that federal beneficial ownership collection is vital for national security and law enforcement, and that the Corporate Transparency Act (CTA) codified these needs. It emphasizes the importance of full CTA implementation and minimizing burdens on small businesses while generating a useful database.
Section 4(b)
Mandate for FinCEN-SBA Coordination MOU
This provision requires the Director of FinCEN and the Administrator of the SBA to enter into a written Memorandum of Understanding (MOU) within 90 days of the bill's enactment. The MOU will outline joint activities specifically designed to disseminate beneficial ownership information to reporting companies and trade associations, including through the SBA's network of resource partners.
Section 4(b)(1)-(7)
Mandated Outreach and Compliance Activities
The MOU must include specific activities: disseminating information in multiple languages (English, Spanish, and others as jointly determined), ensuring the SBA website links to FinCEN's beneficial ownership pages, implementing a plan to identify and counter scams related to reporting, and hosting joint in-person town halls and webinars featuring FinCEN staff. These events are to utilize SBA field offices and FinCEN Domestic Liaisons. The MOU can also include any other activities deemed necessary to increase compliance.
Section 5
Joint Congressional Reports
This section requires FinCEN and the SBA to jointly submit reports to relevant Congressional committees every 30 days, starting 30 days after the MOU is signed. These reports must detail actions taken under the MOU, the estimated number of companies that received assistance, and the number of reporting companies in compliance with beneficial ownership requirements, along with future action plans.