Today, new legislation aimed at aiding small businesses in complying with the Corporate Transparency Act (CTA) was introduced by Ranking Member Edward J. Markey (D-Mass.). The bill, presented in the Senate alongside Senators Elizabeth Warren (D-Mass.) and Sheldon Whitehouse (D-RI), has companion legislation in the House led by Congresswoman Nydia M. Velázquez (D-NY) and Congresswoman Maxine Waters (D-CA).
The proposed FinCEN–SBA Coordination on Beneficial Ownership Registration Act mandates cooperation between the Financial Crimes Enforcement Network (FinCEN) and the Small Business Administration (SBA). This coordination focuses on outreach and education to assist small business owners in understanding their reporting obligations under the CTA.
Markey emphasized the importance of preventing illicit activities, stating, "The Trump Administration is allowing bad actors to get away with illicit activities and financial crimes, and we must make sure they do not get away with disregarding the law." He expressed gratitude for Velázquez's collaboration in supporting small businesses while addressing misconduct.
Congresswoman Velázquez highlighted concerns over anonymous shell companies, saying, "Turning a blind eye to anonymous shell companies leaves us vulnerable to fraud, corruption, and abuse." She noted that these entities undermine legitimate small businesses by exploiting systems intended for entrepreneurs.
Senator Warren criticized the Trump administration's approach: "Anonymous shell companies hurt honest small businesses and open the door to fraud and abuse. The Trump Administration should be working with small businesses, not refusing to enforce the Corporate Transparency Act."
Congresswoman Waters pointed out bipartisan support for CTA's original passage aimed at combating money laundering and other illegal activities. She stated that suspending enforcement effectively grants leeway to those exploiting financial systems: "By ignoring this intent...President Trump and Secretary Bessent are gifting these bad actors a free pass."
The bill outlines minimal reporting requirements for most small enterprises. Despite projected costs being manageable—approximately $85—confusion about compliance persists due to limited initial outreach efforts.
To enhance awareness among small businesses regarding CTA compliance measures outlined within Markey’s proposal include:
- A formal agreement between FinCEN & SBA within 90 days.
- Guidance distribution across multiple languages.
- Webinars & town halls via SBA offices/partners.
- Strategies protecting against scams/fraud.
- Monthly updates submitted before Congress concerning outreach/compliance progress.
A complete version of this legislative initiative is accessible online.
