Category: US Senate

Source: United States Senator for West Virginia Shelley Moore Capito

RANDOLPH/TUCKER COUNTY, W.Va. – U.S. Senator Shelley Moore Capito (R-W.Va.) today made several stops in Tucker and Randolph counties to highlight economic development and infrastructure.

Among the events today included a visit to Corridor H, where Senator Capito was joined by Governor Jim Justice (R-W.Va.), Congressman David McKinley (R-W.Va.), leaders with the West Virginia Department of Transportation (WVDOT), and other officials to announce a bid award for the Cheat River Bridge, which will connect a 15-mile stretch of Corridor H between Kerens and Parsons in Tucker County, W.Va. The successful bid of $147,839,550 was made by Triton Construction of St. Albans, W.Va. Once completed, the bridge will be among the longest bridges in the entire state. In 2020, Senator Capito helped secure funding for the project, and was personally notified of the award by then-U.S. Department of Transportation (DOT) Secretary Elaine Chao.

“Completing Corridor H has the ability to create tremendous opportunities for economic growth in West Virginia, and it has been a top priority me during my time in Congress,” Senator Capito said. “As we all know, building a road in West Virginia is expensive and it takes time, but the benefits to our state are well worth the costs. That’s why when I was negotiating and crafting the Infrastructure Investment and Jobs Act, which is now law, I created a $2 billion Rural Surface Transportation Grant Program that will dedicate resources to the Appalachian Development Highway System (ADHS). Although we have seen a major increase of support for Corridor H since 2018, there is still much more to accomplish in the future. I will continue to use my role at the federal level, in conjunction with leaders back in West Virginia, to make the completion of Corridor H a reality.”

“As I’ve said over and over, the single most important project in our state right now is Corridor H,” Governor Justice said. “Corridor H will connect all kinds of communities, from Parsons, to Kerens, to Davis, to the state line and far beyond so we can bring more and more prosperity to the Eastern Panhandle and all of West Virginia. And not only will this project employ a bunch of people, but travelers will continue to spend all kinds of money in these communities long after construction ends.”

“I’m proud to join Governor Justice and Senator Capito to make good on the promise we made to the people of West Virginia to finish Corridor H. After 50 years of waiting, we finally have the resources to connect the towns of Parsons and Davis and West Virginia to other states in the region, moving Corridor H much closer to the finish line. Today’s Corridor H announcement, along with the remaining $6 billion from the Bipartisan Infrastructure bill supports much needed hard infrastructure improvements on roads and bridges, broadband, water and sewer in West Virginia. These essential projects will ensure West Virginia remains a competitive place to do business, and we are creating economic development opportunities that will support good jobs for many years to come,” Congressman McKinley said.

“The Corridor H Authority is excited about the awarding of the Cheat Bridge contract for Corridor H. The Cheat Bridge is a significant milestone in the completion of Corridor H and would not have been made possible without the support of Senator Capito and Governor Justice. Senator Capito has helped to secure hundreds of millions of dollars from Washington in the past few years. Funding that will come from the Bipartisan Infrastructure Bill is crucial to the completion of Corridor H,” Robbie Morris, Corridor H Authority President, said.

Additionally, Senator Capito met with members of the West Virginia Broadband Enhancement Council to discuss her Capito Connect initiative and collective efforts to expand broadband connectivity in West Virginia. At the end of the day, Senator Capito and Congressman McKinley held a roundtable discussion with local economic development leaders to discuss the future benefits from recent federal infrastructure investments, as well as the importance of broadband development.

Photos from today’s visit included below:

 

 U.S. Senator Shelley Moore Capito (R-W.Va.) meets with Robbie Morris, Chair of the West Virginia Broadband Enhancement Council, and Rob Hinton of Micrologic in Elkins, W.Va. on Tuesday, February 22, 2022.

U.S. Senator Shelley Moore Capito (R-W.Va.) with members of the West Virginia Division of Highways (WVDOH) in Tucker County, W.Va. on Tuesday, February 22, 2022.

 

U.S. Senator Shelley Moore Capito (R-W.Va.) with Governor Jim Justice (R-W.Va.) and Congressman David McKinley (R-W.Va.) at the Corridor H Cheat Bridge Announcement in Tucker County, W.Va. on Tuesday, February 22, 2022.

U.S. Senator Shelley Moore Capito (R-W.Va.) and Congressman David McKinley (R-W.Va.) meet with economic development leaders from across West Virginia in Elkins, W.Va. on Tuesday, February 22, 2022.

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Source: United States Senator for New York Kirsten Gillibrand

February 19, 2022

In case you missed it, the New York Times published an editorial today endorsing banning members of Congress from trading stocks. The editorial highlighted Senator Gillibrand’s recently reintroduced legislation, the STOCK Act 2.0, which would bar stock trading by members of Congress, the president, vice president, Supreme Court justices, and top Federal Reserve officials. The legislation also strengthens disclosure requirements, expands covered officials, and increases penalties. 

Together with the late Congresswoman Louise Slaughter, Gillibrand wrote and passed the original STOCK Act, landmark legislation that made it illegal for members of Congress to trade based on nonpublic information and required further disclosure which has led to the further calls for reform.  

Read the full article here or below:

Members of Congress Should Not be Trading Stocks, Ever | New York Times

Feb. 18, 2022

By The Editorial Board

The editorial board is a group of opinion journalists whose views are informed by expertise, research, debate and certain longstanding values. It is separate from the newsroom.

Americans are in a sour mood with their elected officials. Blame the pandemic or inflation or Trumpism or stress or structural problems like inequality, but people do not feel that the system, much less its leaders, are working for them. The nation is experiencing a crisis of confidence that is eating away at its strength and unity.

Addressing this problem calls for long-term vision and commitment — things politicians aren’t always known for. But a straightforward idea gaining traction on Capitol Hill could reassure a frustrated and exhausted public that lawmakers at least recognize this trust deficit: a ban on stock trading by members of Congress and their spouses.

This idea got a fresh jolt in the early days of the pandemic after some lawmakers faced awkward questions about whether they used nonpublic information to make lucrative stock trades just as the severity of the threat posed by the coronavirus was becoming clear.

A report in December by Insider was more definitive. It revealed that in 2020 and 2021, dozens of lawmakers failed to abide by rules requiring them to promptly disclose stock trades above a certain threshold. The investigation also found that Congress does a poor job of enforcing accountability and transparency measures.

In response to the uproar, there has been a push by both parties, in both houses of Congress, to establish stronger guardrails on congressional stock ownership. Multiple lawmakers have introduced bills pushing variations of a ban on trading individual stocks, some tougher and more expansive than others. The House minority leader, Kevin McCarthy, reportedly told donors in January that if, as expected, Republicans win back the House in the midterm elections this fall, they would work to pass legislation that would limit lawmakers’ ability to trade stocks.

In a high-stakes election year, with lawmakers eager to show voters that they feel their rage, now is the moment to drive home this popular, common-sense reform. Americans have lost faith in Congress. Restoring trust in this institution requires concrete, bipartisan change.

It has been a decade since Congress last made a significant effort at policing itself in this area. The Stock Act of 2012, among other measures, made it illegal for lawmakers to trade based on access to nonpublic information. The reforms were well intentioned but inadequate. In practice, there are too many legal shades of gray. A clearer, brighter line needs to be drawn. 

For all of the Democratic Party’s talk about restoring public faith in government, its leaders in the House have been, until recently, resistant to talk of a trading ban for members. “We are a free-market economy,” Speaker Nancy Pelosi said in December. “They should be able to participate in that.”

The majority leader, Steny Hoyer, has been similarly weak, suggesting that a ban is unnecessary. While Mr. Hoyer owns no stock, he said that “members ought not to be in a different situation that they would otherwise be if they weren’t members of Congress.”

This rationale does not pass the sniff test. Members of Congress have access to a steady stream of information that regular Americans do not. They already exist in a different, more privileged situation.

The common argument that a trading ban would pose a hardship for lawmakers is no more compelling. Most of the proposals under consideration do not call for members of Congress to sell all their stock holdings. They would merely prohibit lawmakers from trading stocks in individual companies. Assets could still be held in vehicles such as index funds or blind trusts.

It also bears noting that only a sliver of American families, about 15 percent, directly hold stock in individual companies, as opposed to indirectly through mutual funds and the like. A stock trading ban would put lawmakers more in sync with the 85 percent of Americans who own no individual stock, rather than align their interests with the 15 percent who do.

A ban on congressional trading enjoys a bipartisan appeal that is rare in this polarized age. A January poll found that 63 percent of American voters are at least somewhat in favor of such a move — with strong backing among Democrats, Republicans and independents alike.

With the support for reform growing, Ms. Pelosi adjusted course this month, saying she was open to a ban and announcing that the House Administration Committee would look into the situation. The committee chairwoman, Zoe Lofgren of California, has said her team is analyzing the existing bills and would put together a broad-based consensus proposal.

The speaker’s public shift was vital to keeping the push alive, but there is a difference between grudging acceptance and vigorous support. Proponents of reform need to keep the pressure on to ensure that this effort does not get slow-walked or bogged down in the devilish details. Ms. Pelosi, for instance, insisted that reform legislation should apply not only to Congress but also to the judiciary, including the Supreme Court. “It has to be governmentwide,” she asserted.

The judicial branch certainly could use some ethical shoring up. An investigation last year by The Wall Street Journal found that from 2010 to 2018, 131 federal judges “unlawfully ruled in cases involving companies in which they or their families held shares.” People involved in close to 800 lawsuits have since been notified that their cases are eligible to be reopened because of these conflicts.

There are proposals floating around that would address all three branches. Two Democrats, Senator Kirsten Gillibrand of New York and Representative Katie Porter of California, recently reintroduced a bill that would tighten reporting requirements across the board, as well as bar trading of individual stocks by members of Congress, the president and vice president, Supreme Court justices and top officials with the Federal Reserve — which suffered its own trading scandals last year.

But trying to extend a governmentwide ban, while worthy on the merits, would introduce needless and potentially counterproductive complexity right now. There are, most specifically, concerns that an attempt by Congress to impose its will on the judiciary would set off a debilitating debate over the separation of powers. “That is literally a different conversation and one that is so hard to wrap your arms around that you’ve tanked the movement,” as Representative Abigail Spanberger, a Virginia Democrat who co-wrote one of the leading reform bills, lamented to The Times.

Lawmakers’ top priority — arguably, their first duty — should be to clean up their own branch of government. They are, as elected officials, directly accountable to their voters, and many of the people to whom they owe their jobs and salaries have grave doubts about their ethical guidelines and rules of fair play.

In a series of recent Times Opinion focus groups, voters across the political spectrum described their frustrations and even anger at the political class and the system, seeing elected officials in both parties as acting in self-interest without rules or consequences. “They all just go to their barbecues and cocktail parties and laugh,” said one independent voter. “They just want the power. They couldn’t care less about us.” Some Democratic voters expressed interest in term limits, curbs on lobbyist influence on lawmakers and new rules on money in politics.

The push for a trading ban is about more than imposing rules to keep lawmakers on the straight and narrow. It is about changing the widespread perception of public service as a playground for corruption and self-dealing. It is about restoring Americans’ faith in their government. For Congress, there may be no worthier cause.

Source: United States Senator for South Carolina Tim Scott

Tuesday | February 22, 2022

WASHINGTON – U.S. Senator Tim Scott (R-S.C.) led a group of his Republican colleagues in urging the U.S. Department of the Treasury to use its existing authority to provide temporary and targeted relief to the automobile industry, as dealerships struggle with inflation and inventory shortages amidst ongoing supply chain disruptions.

“As the country continues to confront severe supply-chain disruptions, we write to express strong concerns that the Treasury Department has yet to use its existing authority to provide timely relief to auto retailers using the last-in, first-out (LIFO) method of inventory accounting,” the senators wrote. “Treasury’s inaction comes despite the unprecedented pandemic-related interruption of global supply chains that is severely curtailing vehicle production due to the ongoing shortage of semiconductors.”

Cosigning the letter were senators Mike Crapo (R-Idaho), John Thune (R-S.D.), John Cornyn (R-Texas), Chuck Grassley (R-Iowa), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Roger Marshall (R-Kan.), Richard Burr (R-N.C.), Rob Portman (R-Ohio), Thom Tillis (R-N.C.), Cynthia Lummis (R-Wyo.), Shelley Moore Capito (R-W.Va.), Steve Daines (R-Mont.), James Lankford (R-Okla.), Ben Sasse (R-Neb.), Bill Cassidy (R-La.), Jerry Moran (R-Kan.), Mike Rounds (R-S.D.), Marco Rubio (R-Fla.), Todd Young (R-Ind.), Roger Wicker (R-Miss.), Lindsey Graham (R-S.C.), Joni Ernst (R-Iowa), Roy Blunt (R-Mo.), James Risch (R-Idaho), Mike Braun (R-Ind.), John Boozman (R-Ark.), Kevin Cramer (R-N.D.), Rick Scott (R-Fla.), John Hoeven (R-N.D.), and James Inhofe (R-Okla.).

Read full text of the letter here.

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Source: United States Senator for Commonwealth of Virginia Mark R Warner

WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (D-VA) applaud the designation of $1,000,000 in funding from the Appalachian Regional Commission (ARC) to two projects in Southwest Virginia.

“We applaud this funding from the Appalachian Regional Commission for important projects in Russell and Wise counties. These funds will create jobs, improve public health, and boost local economies,” the Senators said.  

The funds will be broken down as follows:

• $500,000 for the Russell Theater Restoration Project in the Town of Lebanon to renovate and reopen the 5,590-square-foot Russell Theater. The restored and renovated Russell Theater will attract visitors and residents from across the region to downtown Lebanon and surrounding businesses for live performances, concerts, and other events.
• $500,000 for the Hamiltontown Sewer Project in the Town of Wise to install 5,540 linear feet of sewer line to the Hamiltontown community located along State Route 758. Currently Hamiltontown community households are served by onsite septic systems, and existing systems are subject to poor performance due to age, lack of maintenance, and soil conditions. This project will update the sewer system and improve public health and the water quality of the Guest River.

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Source: United States Senator for Commonwealth of Virginia Mark R Warner

WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Chairman of the Senate Select Committee on Intelligence, issued the following statement today after Russian President Vladimir Putin decided to formally recognize the independence of Moscow-backed breakaway regions in eastern Ukraine and ordered troops into those areas:

“I just returned to Washington after several days of meetings with our partners and allies in Munich and in London. My takeaway from those meetings is this: the West has never been as resolute or as unified in standing up to Putin’s brazen, reckless and illegal course of action. The United States and our partners stand with the cause of democracy and with the people of Ukraine at this perilous moment.

“Along with my colleagues in Congress, I support President Biden’s measures to impose significant costs on Russia and its autocratic government in response to its unjustified and unacceptable aggression. Those announced today by the President, taken in coordination with our allies, are a good first step, and we must be prepared to impose additional costs on Putin if he carries through on his threats to further invade Ukraine.

“I will also support measures to bolster the readiness and deterrence of the NATO alliance. While we do not want escalation between nuclear powers, there must be no mistake regarding NATO’s readiness to protect its members and deter Russia’s aggression. Putin’s misguided and dangerous actions will only act to further unify this decades-strong alliance of nations.”

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Source: United States Senator for Delaware – Tom Carper

Carper and Blunt Rochester Toured Two Coastal Communities Grappling with Climate Impacts 

SLAUGHTER BEACH, Del. — Today, U.S. Senator Tom Carper and Congresswoman Lisa Blunt Rochester (both D-Del.), toured parts of Slaughter Beach and Indian River Inlet to witness how climate change is threatening Delaware’s coastline.

They were joined by Delaware Department of Natural Resources and Environmental Control (DNREC) Secretary Shawn Garvin, as well as Major General William “Butch” Graham, Deputy Commanding General for Civil and Emergency Operations of the U.S. Army Corps of Engineers, Lieutenant Colonel Ramon Brigantti, District Commander for the Philadelphia District of the U.S. Army Corps of Engineers, and local leaders.

“Coastal communities are working around the clock to protect their homes, businesses, and essential infrastructure from the growing threat of climate change, but they can’t do it alone,” said U.S. Senator Tom Carper. “In Delaware, increased flooding has shut off access to hospitals and schools and displaced residents. Today, we saw these impacts first-hand, and discussed how the federal government can do a better job of helping our state and local governments build their infrastructure in a more resilient, forward-thinking way.”

“Today’s visits to Slaughter Beach and Rehoboth Beach made clear that Delaware’s coastlines continue to bear the brunt of the effects of climate change,” said Congresswoman Lisa Blunt Rochester. “It’s critical that coastal communities in Delaware and across the country have the resources they need to restore their shorelines, mitigate the effects of climate change, protect wildlife habitats, and safeguard their local economies. I look forward to tomorrow’s hearing to continue working on how the federal government and stakeholders can further support efforts to make coastal communities more resilient.” 

The U.S. Army Corps of Engineers (Corps) plays a critical role in providing shoreline and riverbank protection. To help the Corps address these challenges, Senator Carper and Congresswoman Blunt Rochester introduced the Shoreline Health Oversight, Restoration, Resilience, and Enhancement Act (SHORRE) Act earlier this month. They were joined by U.S. Senator Bill Cassidy, M.D. and Congressman Garret Graves (both R-La.). This bicameral, bipartisan legislation would restore our nation’s riverbanks and coastlines, while also making communities across our country more resilient to the effects of climate change. This includes rising sea levels, extreme weather, flooding, and erosion.

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Source: United States Senator for North Carolina Thom Tillis

WASHINGTON, D.C. – Today, U.S. Senator Thom Tillis (R-NC), a member of the Senate Armed Services Committee, issued the following statement:

“History has repeatedly proven that appeasement never works. The entire world, including our adversaries like Communist China, will be carefully watching our response. There can be no doubt: Putin must be severely punished for his illegal actions and provocations, and crippling economic sanctions on Russia are long overdue. The U.S. and our NATO allies must stand with the Ukrainian people, ensuring its military has the weapons it needs to defend its citizens and sovereignty from Russia’s aggression.”

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Source: United States Senator for Rhode Island Sheldon Whitehouse

02.22.22

Noted leader in the fight against kleptocracy and international corruption asks Biden administration to bolster anti-money laundering safeguards in property market

Washington, DC – Senator Sheldon Whitehouse (D-RI) submitted a comment to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) calling on the Department to safeguard America’s rule-of-law financial system by codifying and strengthening the disclosure requirements in the current Geographic Targeting Orders (GTOs) for all-cash real estate transactions conducted through shell companies.

“The United States is engaged in a ‘clash of civilizations’ between rule-of-law nations and those governed by autocracy, kleptocracy, and criminality,” writes Whitehouse in his letter. “Regrettably, in that clash rule-of-law nations like the United States continue to aid and abet our adversaries by providing sanctuary for their stolen wealth, including by allowing anonymous transactions in the $60 trillion U.S. real estate market.

“FinCEN must use this rulemaking as an opportunity to prevent kleptocrats and corrupt actors from hiding their illicit gains in the U.S. real estate market, to plug holes through which illicit cash can flow, and to protect the U.S. financial system,” adds Whitehouse.

FinCEN instituted GTOs in 2016 as a six-month pilot program in the New York and Miami metro areas to respond to the growing concern over money laundering through American real estate. The program requires property title insurers to report to FinCEN beneficial ownership information—the real person or interest—of shell companies that use cash to purchase high-priced real estate. The program has since expanded to a dozen jurisdictions around the country.

Whitehouse’s letter asks FinCEN to codify the reporting requirements and implement several changes to the GTO program. Those changes include:

• Making the rules permanent and expanding the coverage to the entire United States;
• Eliminating the dollar thresholds for coverage and adding commercial transactions;
• Aligning the definition of beneficial owner with the newly-enacted Corporate Transparency Act and collecting beneficial ownership information for certain sellers;
• Documenting the source of funds; and
• Ensuring someone is always responsible for filing.

Whitehouse has led the charge to strengthen America’s hand against international corruption and kleptocracy. He is the Chair of the Senate Caucus on International Narcotics Control, a member of the Commission on Security and Cooperation in Europe (or the Helsinki Commission), and a senior member of the Senate Judiciary Committee. Whitehouse is also the Democratic lead for the Congressional delegation to the annual Munich Security Conference.

Whitehouse led efforts in Congress to pass the most important anti-money laundering reform law in two decades, the Corporate Transparency Act, and the broader Anti-Money Laundering Act of 2020. He has also introduced the Foreign Extortion Prevention Act to make it illegal for foreign officials to demand bribes from Americans, introduced legislation to modernize and strengthen criminal money laundering statutes, and has put forward legislation to help international partners address sophisticated money laundering schemes by drug traffickers. Last week, Whitehouse sent another letter to FinCEN calling for a comprehensive effort to update and strengthen the nation’s anti-money laundering safeguards.

Full text of Whitehouse’s letter is below. A PDF copy of the filing is available here.

Dear Director Das,

I write in response to the advance notice of proposed rulemaking from the Financial Crimes Enforcement Network (FinCEN) regarding “Anti-Money Laundering Regulations for Real Estate Transactions.”[1] In November, I sent you a letter urging you to initiate a rulemaking to expand anti-money laundering safeguards to the real estate sector, and I commend you for doing so.[2] In crafting this rule, I encourage you to build off of the successful Geographic Targeting Orders (GTOs), which have imposed specific transaction reporting requirements on title insurance companies in certain metropolitan areas since 2016. Specifically, I urge you to expand these requirements nationwide, apply them to both commercial and residential real estate transactions, make them permanent, and align the definition of beneficial owner with the recently enacted Corporate Transparency Act (CTA), among other changes.[3]

The United States is engaged in a “clash of civilizations” between rule-of-law nations and those governed by autocracy, kleptocracy, and criminality. Regrettably, in that clash rule-of-law nations like the United States continue to aid and abet our adversaries by providing sanctuary for their stolen wealth, including by allowing anonymous transactions in the $60 trillion U.S. real estate market.[4] Fortunately, years of study and analysis tell us what must be done—in short: transparency.

FinCEN created the GTOs in 2016 as a six-month pilot program in response to growing concerns about bad actors using U.S. real estate markets to launder illicit cash from corrupt and criminal activities. The original order required title insurance agents to collect ownership information about companies that purchased residential property in the New York City and Miami metropolitan areas. The transactions covered were limited to those with the highest risk, including all-cash purchases of luxury real estate. [5] Since 2016, the program has been renewed 11 times, across multiple presidential administrations from both parties, and has been expanded to include wire transfers and encompass a dozen jurisdictions.[6]

The GTOs have been effective at identifying corrupt transactions. According to FinCEN, “about 30 percent of the transactions covered by the GTOs involve a beneficial owner or purchaser representative that is also the subject of a previous suspicious activity report,” corroborating FinCEN’s “concerns about the use of shell companies to buy luxury real estate in ‘all-cash’ transactions.”[7] Further, FinCEN believes that the “GTOs continue to provide valuable data on the purchase of residential real estate by persons possibly involved in various illicit enterprises.”[8] The agency also noted that “[reissuing] the GTOs will further assist in tracking illicit funds and other criminal or illicit activity, as well as inform FinCEN’s future regulatory efforts in this sector.”[9]

The need for FinCEN to expand the reporting requirements in the GTOs and make them permanent has only grown. Foreign investors now account for a third of institutional investment in single-family rental homes in the United States.[10] Property purchased to stash corrupt cash, rather than to house people, pushes middle- and low-income families out of their communities, drives up the price of real estate in newly targeted areas, and harms U.S. businesses.

Yet corrupt actors continue to escape detection by shifting their operations to non-covered jurisdictions. For example, Ukrainian oligarch Ihor Kolomoisky and his associates allegedly embezzled billions from the Ukraine-based PrivatBank and routed the money through the bank’s Cyprus branch before it made its way to the U.S. via a series of anonymous shell companies. The money was then used to purchase commercial real estate in Louisville, Kentucky—a non-covered jurisdiction.[11] Similarly, the U.S. Department of Justice accused a former governor of a Mexican border state, Tomas Yarrington, of taking bribes from a drug cartel, actively contributing to the cartel’s drug trafficking operations, and then laundering that drug money in the United States, including by purchasing real estate in South Padre Island, Texas—a non-covered jurisdiction. Yarrington pled guilty to money laundering in March 2021.[12]

At a time when the Biden administration has designated the fight against foreign corruption a core national security interest,[13] the United States can no longer afford to follow the movement of corrupt money from GTO-covered jurisdictions to non-covered jurisdictions—or worse, to indirectly drive corrupt money from covered jurisdictions to non-covered jurisdictions. FinCEN must use this rulemaking as an opportunity to prevent kleptocrats and corrupt actors from hiding their illicit gains in the U.S. real estate market, to plug holes through which illicit cash can flow, and to protect the U.S. financial system.

This rulemaking should codify the reporting requirements from the GTO program, with several changes:[14]

• Expand the coverage to the entire United States.[15] Illicit money has and will continue to move to non-covered jurisdictions. FinCEN must use its authority to require title insurance agents to collect beneficial ownership information for each transaction in every U.S. city and town.
• Make the rules permanent. While the GTO program has proven useful, FinCEN’s current approach has also proven to be unacceptably unpredictable and burdensome. The program is dogged by questions of whether particular GTOs will be continued, whether particular jurisdictions will be covered, and whether the dollar thresholds will be changed. This creates uncertainty for real estate professionals, and limits its ability to develop training programs and guidance for implementation.
• Eliminate the dollar thresholds for coverage. FinCEN originally created minimum dollar thresholds specific to each covered jurisdiction. But as the program expanded to cover new jurisdictions, these area-specific thresholds became more cumbersome and complicated, outweighing any benefits they provided. In response, FinCEN adopted one standard for all covered jurisdictions. FinCEN should help reduce the cost of implementation by eliminating the dollar threshold entirely.
• Add commercial transactions. Because they routinely involve multiple buyers and a variety of financing mechanisms, commercial transactions are often more complicated than residential transactions. The complicated, opaque nature of these purchases makes them higher risk, and thus worthy of being covered going forward.
• Align the definition of beneficial owner with the CTA.[16] The CTA included a comprehensive and clear definition of beneficial owner which will apply to the vast majority of entities doing business in the United States. FinCEN should adopt the CTA’s definition of beneficial owner for this rule to minimize loopholes which could be exploited and to simplify compliance with the new reporting requirements.
• Collect beneficial ownership information for certain sellers. In addition to documenting the buyers’ beneficial ownership information, the rule should require the disclosure of the sellers’ beneficial ownership information if the sellers did not disclose such information when they purchased the property.
• Document the source of funds. In addition to the buyer’s beneficial ownership information, the rule should also require the collection and filing of documentation on the sources of funds used in the transactions.
• Ensure someone is always responsible for filing. It is important to ensure that information is disclosed to FinCEN even if a title insurance company is not involved in a particular real estate transaction. FinCEN’s rule should ensure that someone is always responsible for reporting this information, and it should provide a clear set of guidance indicating exactly who is responsible for reporting in each possible scenario.

While the CTA provisions in the Anti-Money Laundering (AML) Act of 2020 require U.S. business entities to report their ownership information to FinCEN,[17] new real estate reporting requirements remain necessary to effectively combat corruption. Without this rulemaking, offshore entities, for instance, can still anonymously buy U.S. real estate, and it appears as though certain legal entities formed in the United States may still evade the CTA’s reporting requirements.[18] Fortunately, Congress explicitly provided FinCEN with additional authority in the AML Act to expand the reporting requirements in the GTO program.[19]

Thank you again for the work you do to combat money laundering, transnational drug trafficking, and other illicit uses of the U.S. financial system that fuel global corruption and kleptocratic regimes. I look forward to working with you throughout this rulemaking process to ensure that the final rule is as strong as possible.

Source: United States Senator for Oklahoma James Lankford

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Source: United States Senator Kevin Cramer (R-ND)

BISMARCK – U.S. Senator Kevin Cramer (R-ND) joined Senator Rick Scott (R-FL) in introducing the Terminating Reckless and Unnecessary Checks Known to Erode Regular Shipping (TRUCKERS) Act. The TRUCKERS Act would exempt non-U.S. citizen commercial truck drivers traveling from Canada or Mexico who are seeking to temporarily enter the United States for business through a land port of entry from proof of vaccination requirements.

“Vaccine mandates for truckers to enter the U.S. from Mexico and Canada are an extreme abuse of power with far-reaching consequences. We’re suffering through a supply chain crisis, and we need every trucker moving every product to every consumer and every place possible. Our bill provides much-needed relief from burdensome vaccine mandates to allow commerce to flow freely throughout North America,” said Senator Cramer.

“Truck drivers are the backbone of America’s economy. My dad was a truck driver and I know firsthand how critical these men and women are to getting products flowing to American families and businesses again. President Biden’s inflation and supply chain crises are devastating so many Americans, especially our poorest families like mine growing up. By pushing these ridiculous mandates, he is only making things worse,” said Senator Scott. “The government has no business pushing mandates on families and our hardworking businesses and my TRUCKERS Act will help stop this nonsense in its tracks. Joe Biden would be wise to take note of what’s happening in Canada and see that the top-down, “government controls all” approach doesn’t work. I also urge Canada’s government to drop its ridiculous mandates on foreign drivers. I hope all of my colleagues will work with us to quickly pass this good and urgently needed bill.”

Senators Cramer and Scott were joined by Senators Josh Hawley (R-MO), John Hoeven (R-ND), Mike Lee (R-UT), Mike Braun (R-IN), Marsha Blackburn (R-TN), and Roger Marshall (R-KS).