A day after senior Senate Judiciary Committee members introduced legislation to complement the Senate Banking Committee effort, the Senate Judiciary Committee today held a sparsely-attended hearing on beneficial ownership disclosure. This report analyzes today’s session, at which Chairman Graham (R-SC) made it clear that he wants action on beneficial ownership and plans to work cooperatively with Senate Banking on its initiatives. FSM Report LAUNDER129 analyzes far-reaching bipartisan draft legislation addressing matters within Senate Banking’s jurisdiction, with aspects of this bill also reflected in House measures as detailed in this FedFin report. The Judiciary Committee legislation (S. 1889) from Sen. Whitehouse (D-RI) and former Chairman Grassley (R-IA) would update criminal statutes in the Judiciary Committee’s jurisdiction to require states to obtain beneficial ownership information on corporations and LLCs formed within their jurisdictions. States would turn this over to law enforcement when presented with a subpoena. The measure would also extend bank customer due diligence requirements to other professionals that form business entities.
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