Pub. 9 2021 Issue 1

www.uba.org 6 COMPLIANCE CORNER THE NATIONAL DEFENSE AUTHORIZATION ACT: BSA/AML Initiatives By Elizabeth K. Madlem, Vice President of Compliance Operations and Deputy General Counsel, Compliance Alliance O n Jan. 1, 2021, the Senate voted to override President Trump’s veto on the National Defense Authorization Act (NDAA or Act). It was previously overridden by the House back on Dec. 28, 2020. The NDAA includ- ed over 200 pages of significant reforms to the Bank Secrecy Act (BSA) and other anti-money laundering (AML) laws putting forth the most comprehensive set of BSA/AML reforms since the USA PATRIOT Act of 2001. The continuing question is, what are the implications of this Act? How will this impact not only financial institutions but also U.S. companies and compa- nies doing business in the United States at large? For starters, certain U.S. companies and companies doing busi- ness in the U.S. (“reporting companies”) will be required to provide FinCEN with information regarding their beneficial owners. This includes names, addresses, dates of birth, and unique identifying numbers. Newly incorporated companies will be required to do so at the time of incorporation. Exempt companies include public companies, as well as companies that: (i) have more than 20 full-time employees, (ii) report more than $5 million in yearly revenue to the Internal Revenue Service, and (iii) have an active presence at a physical office within the United States. Changes in beneficial ownership will require