A bipartisan group of lawmakers recently forwarded correspondence encouraging the Treasury Department to implement the Corporate Transparency Act (CTA) to aid the federal government in imposing Russian oligarch sanctions.
U.S. Sens. Elizabeth Warren (D-MA), Chuck Grassley (R-IA), Sheldon Whitehouse (D-RI), Marco Rubio (R-FL), Ron Wyden (D-OR), Bob Menendez (D-NJ), and Bill Cassidy (R-LA) signed the letter to Treasury Secretary Janet Yellen and Acting Director of the Financial Crimes Enforcement Network (FinCEN) Himamauli Das regarding the matter.
The senators have requested a timeline for the Treasury Department’s implementation of the CTA, stating the action would bolster the country’s anti-money laundering laws. However, they did acknowledge that FinCEN has proposed one of three planned CTA rules and is four months past the statutory deadline for implementation.
“The Treasury Department has yet to finalize the implementation of the CTA—or even set a timetable for its completion… In various hearings last month, both of you could only commit to proposing the second CTA rule by the end of this year,” the senators wrote. “These delays run contrary to the clear instructions of Congress, undermine American efforts to respond to Russia’s war against Ukraine, and hinder broader efforts to protect the U.S. financial system against the threat of illicit finance.”
The senators said that beneficial ownership disclosure, a CTA requirement, is relevant amid Russia’s invasion of Ukraine since the information is necessary to implement America’s sanctions against Russian oligarchs while protecting national security and financial system stability.