A bill to amend title 31, United States Code, to require only foreign entities to report beneficial ownership information, and for other purposes.
Introduced April 28, 2026 · Last action April 28, 2026
Plain English Summary
This bill narrows the federal beneficial ownership reporting requirement to apply only to foreign companies doing business in the U.S., exempting all U.S. persons and U.S.-formed entities from the reporting mandate. It also requires the Treasury Department to delete all existing beneficial ownership information on U.S. persons within 90 days of enactment.
Who benefits
U.S. citizens and residents who own or control corporations, limited liability companies, and other business entities (both domestic and foreign-formed); shell companies and holding entities used by wealthy Americans; real estate investors using opaque ownership structures; domestic businesses operating through foreign entities; privacy-focused business owners; individuals seeking to avoid disclosure of conflicting business interests.
Who pays / loses
Federal law enforcement agencies (FBI, DEA, Secret Service) who use beneficial ownership data for financial crime investigations; FinCEN which loses enforcement tools for tracking illicit financial flows through U.S. entities; state attorneys general investigating corporate malfeasance; victims of fraud, theft, and embezzlement whose perpetrators use anonymous shell companies; foreign governments cooperating with U.S. on sanctions enforcement; financial institutions that rely on beneficial ownership registries for know-your-customer compliance; competitors defrauded through anonymous corporate schemes.
Funding & Lobbying Interests
Real estate developers and investors who benefit from opaque ownership structures (historically a major lobbying force against beneficial ownership transparency); hedge funds and private equity firms using complex entity structures; family offices managing wealth for ultra-high-net-worth individuals; foreign investors seeking to hide U.S. asset ownership; cryptocurrency and digital asset businesses that have opposed beneficial ownership disclosure; industries with political sensitivity around ownership disclosure (defense contractors, political consulting firms, media companies). Sponsors include libertarian-leaning Republican senators (Kennedy, Lee, Cruz) whose donor bases include business groups opposed to regulatory transparency mandates.
Political Impact
Affected Groups
U.S. business owners with assets to conceal (no specific percentage provided in bill); law enforcement agents conducting financial crime investigations; victims of fraud schemes using shell companies; foreign governments trying to enforce sanctions; U.S. citizens defrauded through anonymous corporate structures; financial institutions required to conduct due diligence.
Political Subtext
Proponents argue this bill protects privacy rights of U.S. citizens from government overreach and unnecessary federal data collection, claiming beneficial ownership reporting primarily burdens law-abiding Americans while criminals use foreign entities anyway. Critics counter that beneficial ownership transparency is a cornerstone of modern anti-money laundering frameworks endorsed by the Financial Action Task Force (FATF) and international partners; that the U.S. has historically been a haven for shell company abuse precisely because of lack of transparency; that FinCEN data is already used by legitimate law enforcement to prosecute financial crimes, sanctions evasion, and tax fraud; and that the bill guts existing reporting infrastructure (requiring deletion of current data) that agencies depend on. Non-partisan evidence shows beneficial ownership registries correlate with reduced illicit financial flows in jurisdictions that implement them (per FATF mutual evaluation reports); the U.S. has previously been cited by international bodies for inadequate corporate transparency compared to peer nations.
Real-World Stakes
If enacted, this bill would eliminate the beneficial ownership reporting requirement established by the Corporate Transparency Act (CTA), which took effect in 2024 and created the first comprehensive U.S. database of who truly owns businesses. Deleting 90 days of collected data would remove records already submitted and eliminate an enforcement tool for ongoing investigations. Analogous rollbacks occurred in other countries: when the UK weakened corporate transparency rules in specific sectors, shell company formation spiked; when the U.S. allowed FinCEN's previous beneficial ownership pilot to lapse, shell company misuse in real estate and trade-based money laundering increased. The CTA was supported by law enforcement (FBI, DEA, IRS Criminal Investigation) and passed with bipartisan support in 2021. If this bill passes, the U.S. would reverse course and become an outlier among OECD countries on corporate transparency, reverting to pre-2024 opacity that foreign governments and FATF have criticized as a vulnerability for sanctions evasion and anti-corruption enforcement.
What's Inside This Bill
Non-obvious provisions not apparent from the headline summary.
Retroactive Deletion of Existing U.S. Person Records
Requires Treasury to permanently delete all beneficial ownership information already collected on U.S. persons and U.S. entities within 90 days, eliminating historical data that may have been used in ongoing investigations or compliance reviews.
AffectsLaw enforcement agencies, financial regulators, and anti-money laundering investigators who rely on existing beneficial ownership records for ongoing cases, pattern analysis, and historical verification of shell company networks.
Foreign Company Definition and Enforcement Gap
By exempting U.S.-formed entities regardless of foreign ownership or control, the bill creates a loophole where foreign nationals can maintain anonymity by simply incorporating domestically, while the narrowed foreign company definition may lack clear enforcement mechanisms for determining when a company qualifies as 'foreign.'
AffectsFinancial intelligence units and law enforcement attempting to track beneficial owners in money laundering, sanctions evasion, and corruption cases where foreign actors use U.S. shell companies to obscure their involvement.
No Grandfathering or Transition Provision
The bill contains no carve-out for beneficial ownership reports already filed, subpoenaed, or under investigation, meaning data deletion is absolute and immediate with no exception for pending legal proceedings.
AffectsProsecutors, civil litigators, and regulatory agencies with ongoing investigations or litigation that depend on beneficial ownership disclosures as evidence.
Elimination of Domestic Transparency for Foreign Investors in U.S. Companies
By exempting all U.S.-formed entities from reporting requirements, foreign investors in U.S. real estate, infrastructure, technology, and defense-adjacent companies can maintain complete anonymity regarding their beneficial ownership interests.
AffectsNational security agencies, CFIUS (Committee on Foreign Investment in the U.S.), and foreign direct investment monitors tracking potential strategic acquisitions and national security risks.
Sponsor
Co-sponsors (12)
RSen. Banks, Jim [R-IN]RSen. Blackburn, Marsha [R-TN]RSen. Justice, James C. [R-WV]RSen. Marshall, Roger [R-KS]RSen. Cruz, Ted [R-TX]RSen. Sheehy, Tim [R-MT]RSen. Lankford, James [R-OK]RSen. Husted, Jon [R-OH]RSen. Capito, Shelley Moore [R-WV]RSen. Hagerty, Bill [R-TN]RSen. Lee, Mike [R-UT]RSen. Ricketts, Pete [R-NE]
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
Top contributing industries
Other$94,770.2
Finance$12,400
Energy$3,362.05
Healthcare$1,703.8
Agriculture$250
501(c)(4) disclosure: Contributions from 501(c)(4) "dark money" organizations are not required to be publicly disclosed and are not reflected in the figures above. Data sourced from FEC public disclosure filings.
Community Discussion
Share this bill
Sign in to join the discussion.
No comments yet. Be the first.