S.Amdt. 3700

SA 3700 is an amendment to bill S. 2296. Its purpose is to change Section 5336 of title 31, United States Code by adding a new subsection regarding Access to Beneficial Ownership Information by Private Parties.

This amendment aims to add the following to the bill:

• Access Licenses: It requires the Director to create a process where covered entities (financial institutions providing screening services or entities assisting them) can apply for a license to access beneficial ownership information.

• Requirements for Licenses: The Director can only issue a license if it is determined that access is based on a reasonable concern for United States national security and economic stability. This includes identifying corrupt foreign officials and international illicit actors involved in activities such as:

  • International terrorist financing.
  • Activities by agents of governments like Iran, North Korea, and Syria, or others that support international terrorism.
  • Activities by individuals or entities on the Office of Foreign Assets Control list of specially designated nationals and blocked persons.
  • Illicit financial conduct supporting transnational criminal, drug trafficking, or money laundering organizations.

• Restrictions and Rules:

  • Access must be limited to permitted personnel for permitted purposes, which is defined as the use of the information for screening services.
  • Licenses expire after 2 years but can be renewed for additional 2-year periods.
  • The Director must create regulations for how this information is used, disclosed, and kept.