Jeff Brabant, Vice President of Federal Government Relations at the National Federation of Independent Business (NFIB), provided testimony before a subcommittee of the U.S. House Committee on Financial Services. The hearing was titled “Following the Money: Tools and Techniques to Combat Fraud.” Brabant's remarks focused on the negative effects of the Corporate Transparency Act (CTA) on small businesses, and he urged its repeal.
Brabant emphasized, "Data privacy is a significant concern for small business owners. A prime example of this is the Corporate Transparency Act. Under the CTA, small businesses with fewer than 20 employees and $5 million in revenue are required to report their beneficial ownership information to the Financial Crimes Enforcement Network."
He also highlighted the privacy risks stemming from broad access to this information by law enforcement and intelligence agencies. Brabant remarked, "Federal, state, local, and international law enforcement, and intelligence agencies can access this information without a subpoena or warrant. Small businesses fear their information will be targeted by criminals, politically motivated individuals, or subject to cyberattacks by our nation’s adversaries, that could expose their personal information to actual criminals and nefarious actors."
Brabant urged legislative action through the proposed Repealing Big Brother Overreach Act. "Absent intervention from the courts, Congress can clean this mess up by passing Chairman Davidson’s Repealing Big Brother Overreach Act. This legislation would repeal the CTA so a future administration could not revive or expand the statute," he stated.
The NFIB continues its campaign for the permanent repeal of the law establishing beneficial ownership information reporting requirements. The organization is also advocating for the Financial Crimes Enforcement Network to destroy all data submitted by U.S. small businesses and is pursuing a lawsuit against the reporting requirement in federal court.
For 80 years, NFIB has represented small and independent business owners, advocating for their interests in Washington, D.C., and across the United States.
