House Appropriations Bill Would Cut Funding for FinCEN’s BOI Reporting Rule
The House version of the FY 2025 Financial Services and General Government Appropriations Bill could withhold funds the Treasury Department’s Financial Crimes Enforcement Network may need to implement or enforce its new beneficial ownership information (BOI) reporting rule.
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The House Appropriations Committee, which publicly released the legislation June 4, said FinCEN has gone beyond the intent of the Corporate Transparency Act, the 2021 law that mandates the new rule. The committee also noted that a federal district court judge ruled in March that the CTA is unconstitutional, though the government is appealing the decision (see 2404250069).
The BOI rule, which requires many companies to submit information on who owns and controls them, is designed partly to help the government prevent sanctioned parties and others from hiding money or property in the U.S. (see 2312210017). But Republicans have argued that the regulations are too complicated and invade personal privacy and that most business owners are unaware of the reporting requirements (see 2402140044).
The bill would cut FinCEN’s funding. It would provide $170.2 million for the agency, $45.5 million below the Biden administration’s request and $20 million below the FY 2024 enacted level.
Another provision in the bill would provide $216.1 million for Treasury’s Office of Terrorism and Financial Intelligence (TFI), $14.5 million below the request and $10.8 million below FY 2024. The House committee noted that TFI "combats terrorism financing and administers economic and trade sanctions through its Office of Foreign Assets Control."
A House Appropriations subcommittee plans to mark up the legislation June 5. Democrats raised a host of concerns about the overall Republican-led bill, including funding cuts at various agencies. Republicans attributed the reductions to fiscal constraints.