Corporate Transparency Act of 2019

Floor Speech

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Mr. CLEAVER. Mr. Speaker, I thank the chairwoman for her work in this area, and for allowing those of us who are interested in this legislation to play a major role.

As many of my colleagues are aware, national security is one of the most pressing matters facing the United States of America and the world. I am excited for the opportunities that this moment presents to address these issues head on.

Our most profound responsibility as Members of Congress is to preserve America's national security and the United States' global position as an international leader in free and fair markets.

Since the last major anti-money laundering reforms of 2001, the national security threats that face our country have evolved profoundly and significantly, and frighteningly. Cyber and technological attacks have risen to the top of our most recent worldwide threat assessment as a paramount national security risk.

Underground online trafficking now allows for simplified avenues to transport illicit material across the Nation and around the globe, and cryptocurrencies now allow for streamlined means to fund criminal organizations. With virtual currency, dark web marketplaces and illicit technologies expanding to threaten citizens safety and hard-earned savings, it is critically important, Mr. Speaker, that our federal agencies evolve to meet and conquer these new challenges.

The COUNTER Act will do just that. This legislation will empower the Treasury Department to protect our national security and explicitly safeguard our financial systems through the Bank Secrecy Act.

It codifies a voluntary information-sharing program between law enforcement, financial institutions, and the Treasury Department, better ensuring the capture of illicit activities.

It balances national security and personal privacy by requiring Treasury and financial regulators to create the position of civil liberty and privacy officer. This officer will ensure that policies being developed and implemented are not intruding or undermining citizens' constitutional rights.

While the bill will close a number of loopholes that have allowed for financial crimes to be committed, it will also pull us into the 21st century by positioning the United States to face tomorrow's challenges.

The bill encourages financial regulators to work with companies to implement innovative approaches to meet the requirements in complying with existing law and encourages the use of innovative pilot programs.

Financial regulators will establish an innovation lab that will provide outreach to law enforcement, financial institutions, and others, to coordinate on innovative and new technologies, ensuring they comply with existing law while fostering the implementation of new technologies. An innovation council will also be created, represented by the directors from each innovation lab, who will coordinate on active Bank Secrecy Act compliance.

It is imperative that we modernize our efforts to combat financial crimes because our adversaries will continue to modernize. I am happy that this bill is coming before us, the COUNTER Act, as an amendment to Congresswoman Maloney's bill, the Corporate Transparency Act, which I know she and her team have worked very hard to produce.

The straightforward bill, Mr. Speaker, provides needed visibility by requiring companies and the United States to disclose the financial beneficiary in order to prevent criminals and wrongdoers from exploiting their status as a company.

Mr. Speaker, these are critical proposals. I urge my colleagues to support this legislation, and I thank Chairwoman Waters.

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