S.Amdt. 5869

This amendment, known as the Ownership Clarity Act, aims to add a new section to the bill regarding access to beneficial ownership information.

The purpose of this amendment is to change section 5336 of title 31, United States Code, to allow private parties to access this information. Specifically, it adds the following:

• Access Licenses: It requires the Director to create a process for covered entities to apply for an access license. A covered entity is a financial institution that provides screening services, or an entity that helps a financial institution provide those services.

• Requirements for Approval: The Director can only issue a license if they determine that access is based on reasonable concerns for United States national security and economic stability. This includes identifying corrupt foreign officials and international illicit actors involved in:

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

• Restrictions: Access is limited to permitted personnel for a permitted purpose, which is defined as using the information for screening services. These services are meant to protect national security from illicit actors engaging in activities such as money laundering, terrorism financing, drug and human trafficking, and serious tax fraud.

• Duration and Oversight: Licenses expire after 2 years but can be renewed for additional 2-year periods. The Director must also create regulations for how this information is used, disclosed, and kept.